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Published on Mar 24, 2009
The housing bubble is probably the biggest reason why America now faces a financial crisis. But what caused the bubble, and why are there now so many foreclosures causing so much damage in the rest of the financial sector? In this Center for Freedom and Prosperity Foundation video, Peter J. Wallison of the American Enterprise Institute explains how government policy mistakes are responsible and he specifically highlights the destructive impact of two government-created entities known as Fannie Mae and Freddie Mac. The video concludes with four key lessons that explain how to avoid similar mistakes in the future.