In today's column I explain how Fannie Mae and Freddie Mac have been asked to do two completely incompatible things: help subsidize the housing market and make profits for shareholders. Top management is compensated on the latter goal: higher profits meant higher share prices, more compensation for top management. Unfortunately, they got those higher profits by guaranteeing questionable loans! Now what???
Mortgage Mess: August 2008 Archives
Terry Savage
Terry Savage writes a syndicated personal finance column for the Chicago Sun-Times and for TheStreet.com. Her latest book is "The Savage Number: How Much Money Do You Need to Retire?" Read more at TerrySavage.com.
