--- title: "Meaning & Key Takeaway of: In September 2008, the two largest…" description: "\"In September 2008, the two largest housing mortgage companies called Fannie Mae and Freddie Mac, which were government-sponsored enterprises, which hol..." image: "https://sms4smile.com/quotes/i/770/ben-bernanke-1388_business_in-september-2008-the-two-largest-housin_2037562.png" --- # In September 2008, the two largest housing mortgage… ![“In September 2008, the two largest housing mortgage companies called Fannie Mae and Freddie Mac, which were government-sponsored enterprises, which hold hundreds of billions of dollars of mortgages, because of the losses they took on the mortgages, they essentially became insolvent, and the…” quote by Ben Bernanke](https://sms4smile.com/quotes/i/770/ben-bernanke-1388_business_in-september-2008-the-two-largest-housin_2037562.png) [Download](https://sms4smile.com/quotes/i/770/ben-bernanke-1388_business_in-september-2008-the-two-largest-housin_2037562.png) [Open image](https://sms4smile.com/quotes/i/770/ben-bernanke-1388_business_in-september-2008-the-two-largest-housin_2037562.png) > “In September 2008, the two largest housing mortgage companies called Fannie Mae and Freddie Mac, which were government-sponsored enterprises, which hold hundreds of billions of dollars of mortgages, because of the losses they took on the mortgages, they essentially became insolvent, and the government had to take them over.” [Ben Bernanke](https://sms4smile.com/quotes/author/ben-bernanke/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Government takeover of Fannie Mae and Freddie Mac was due to massive mortgage losses rendering them insolvent. **In simple terms:** Mortgage giants failed, prompting government rescue. Key Takeaway Understand systemic risk in finance. Themes financial crisis government intervention mortgage market Mood serious analytical Type educational informative When to use this quote - banking - housing market - policy making - investment strategy Key Concepts risk management regulatory policy Questions to Reflect On - What safeguards prevent future failures? - How should taxpayers bear rescue costs? A Different Perspective Rescues can create moral hazard. ★ ★ ★ ★ ★ No ratings yet [Business](https://sms4smile.com/quotes/about/business/) [Customer](https://sms4smile.com/quotes/about/customer/) [Government](https://sms4smile.com/quotes/about/government/) [Housing](https://sms4smile.com/quotes/about/housing/) ## Related quotes > [“For that purpose, partly as the result of Ranieri’s persistent lobbying, two new facilities had sprung up in the federal government alongside Ginnie Mae.…](https://sms4smile.com/quotes/michael-lewis/for-that-purpose-partly-as-the-result-of-ranieri-s-persistent/) [Michael Lewis](https://sms4smile.com/quotes/author/michael-lewis/) > [We have to be pretty tough with mortgage companies and say you have got to give people the chance to work out their debts,…](https://sms4smile.com/quotes/george-osborne/we-have-to-be-pretty-tough-with-mortgage-companies-and-say-you-have/) [George Osborne](https://sms4smile.com/quotes/author/george-osborne/) > [Lawsuits against reverse mortgage companies, including the nation's largest, Financial Freedom Senior Funding, contend that those firms helped pressure older Americans into bad investments.](https://sms4smile.com/quotes/charles-duhigg/lawsuits-against-reverse-mortgage-companies-including-the-nation-s/) [Charles Duhigg](https://sms4smile.com/quotes/author/charles-duhigg/) > [I want to go further, because it was investment banks, it was insurance companies, it was mortgage companies, all of which contributed.So let's not…](https://sms4smile.com/quotes/hillary-clinton/i-want-to-go-further-because-it-was-investment-banks-it-was-insurance/) [Hillary Clinton](https://sms4smile.com/quotes/author/hillary-clinton/) > [“Bill Clinton's political formula for seizing the presidency was simple. 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