Rescuing Fannie and Freddie May Backfire, Professor Anil Kashyap Warns

Writing on the financial implications of the government's bailouts of Fannie Mae and Freddie Mac, articles from the Wall Street Journal and Chicago Tribune gathered  the thoughts of Anil Kashyap, Edward Eagle Brown Professor of Economics and Finance, on the issue. Kashyap warned of the possible long-term consequences from the intervention, stating in the Chicago Tribune that it creates a sense of moral hazard, and in the Wall Street Journal that policy makers have established a dangerous precedent.