Professor Elam

Tuesday June 28, 2011

Do you know Gretchen Morgenson? She is a financial journalist now writing for the NY Times. Her latest endeavor is about the meltdown entitled Reckless Endangerment.. 

She and co-author Joshua Rosner focus on Fannie Mae and its head James Johnson in the 1990s. The government clearly loaned money to people that could not afford homes. This inflated home prices making money for everyone in the game.  That is until the home owners stopped paying and the game ended. We are not out of the woods yet.  I suspect we should make several of these books required reading. 

I am reading Mike Lewis' The Big Short.