Reckless Endangerment

This book is an amazing look at the corruption that allowed Fannie May and Freddie Mac to decimate the economy. Both companies ran massive lobbies that promoted ‘community and housing’ something that no politician could vote against. In the meantime they created a network of offices around the US that didn’t offer mortgages as a mortgage company should, but instead served as local lobbying and patronage centres.  Fannie and Freddy lobbied tirelessly to prevent privatization knowing they enjoyed a huge government perk (the unwritten government loan backstop). In return Freddy and Fannie shared a tiny tiny share of that benefit with their customers and used the rest to pad shareholders and managements pockets.  This book provides a very real and readable warning about the power large companies have over government and the disastrous danger that presents to society. The sad part is that academics, some bankers, and some honest lawmakers could see the hazards that these companies posed and yet were powerless to stop them.