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Difference Between Fannie Mae And Freddy Mac

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Fannie Mae and Freddie Mac:

As part of the FDR’s program to get out of the Depression in 1938, Congress created “Fannie Mae” the Federal National Mortgage Association. It was created to underwrite home loans, to encourage more home purchases and construction of new homes. Eventually by 1968, the government made Fannie Mae a private organization and they now make their money by buying and repackaging bank’s mortgages and selling them like bonds. In 1970 Congress created another Federal Home Loan Mortgage Corporation, known as Freddie Mac, they created Freddie Mac to insure that there would be competition in the mortgage market. They also do the same thing as Fannie Mae does now.

The Lobbyist made sure that Congress kept supporting Fannie
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325 Words | 2 Pages

1.) During the initial months of the depression, the general belief was that the troubles were cause by the "cut-throat competitions" between businessmen causing many businesses to fail. As a result the Roosevelt administration's first attempt ot deal with the crisis was to mitigate such "cut-throat competitions" with the provisions of the National Industrial Recovery Act of 1933. This act spawned the Nation Recovery Administration (NRA). The NRA was empowered to bring government, industrial corporations, and labor unios together to find ways to get rid of "cut-throat competitions".

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At this time, these people were in desperate need of work and money. By creating paid work, the WPA increased consumer spending, increasing demand for products and helping to get the economy moving again. The formation of the FDIC (Federal Deposit Insurance Corporation) links to Roosevelt’s ideas of reform as it was designed to restore confidence in the American banking system by the government guaranteeing a certain amount of a saver’s money deposited in each

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In addition, Roosevelt sought to reform the financial system, creating the Federal Deposit Insurance Corporation (FDIC) to protect depositors’ accounts and the Securities and Exchange Commission (SEC) to regulate the stock market and prevent abuses of the kind that led to the 1929

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The Great depression sent it affects all through the world. Though millions of Americans lost their jobs and homes. Soon “Hoovervilles” started to take over all over the country which were shacks of improvised housing for people who lost everything. When F.D.R came into office in 1932 he helped Americans and America start to recover with the passing of many laws and regulations . One change was the creating of the FDIC, which insured the peoples savings stayed in the bank.

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Smoot-Hawley, Reconstruction Finance Corporation, Revenue Act Of 1932 The significance of this triad is that all of these things were failed attempts under Hoover between 1929 and 1932 to pull America out of the Great Depression. Smoot-Hawley Tariff was created by Reed Owen Smoot and Willis C. Hawley in June 1930. It raised tariffs on over 20,000 imported goods and added a flat fee. It made American products affordable to stimulate the economy and pull us out of the Great Depression.

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During his first term in office, he took on programs and policies to relieve the effects of the depression, collectively known as the New Deal. During this time, many social policies were passed to specifically aid the working class. Some of the acts Roosevelt implemented were the Glass-Steagall Act, the Federal Deposit Insurance, the Securities and Exchange Commission, the Home Owners Loan Corporation, the Works Progress Administration, the National Labor Relation Board, and Social Security. All of these acts were put in place to aid the working class, and prevent the severity of future depressions. The outcome of the New Deal gave a new role for the federal government, which is the partial responsibility for the people’s financial

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The New Deal was successful because it ended the bank crisis. This ended because the government created the FDIC and it was successful, FDIC stands for Federal Deposits Insurance Corporation. In other words this means That the Government insures bank deposits. The government examines

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894 Words | 4 Pages

The New Deal was a group of legislation created by Franklin D. Roosevelt during the Great Depression. The Great Depression was an era of great financial panic in the 1930s due to the great stock market crash. The United States had just come off of the high and joy of the Roaring 20s and was greatly affected by this depression. People lost their money and their livelihood and were left with nothing. The people of the United States needed assistance to survive in the terrible financial situation they were in; Roosevelt knew what needed to be done and drafted new legislation called the New Deal.

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177 Words | 1 Pages

The Apple Shippers Association played a large role during the Great Depression. In 1930, they had an oversupply of apples and came up with a solution that would help Americans during the depression. First of all, the association sold apples for a cheap price on credit to unemployed people. This helped the unemployed earn money to help their struggling families. They would sell their apples on the streets for a higher price of five cents so they could make a profit.

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The United States went through a long period of economic instability. Banks had failed causing a loss of money and trust in banks. People were then forced into poverty or struggling times. President Franklin D. Roosevelt came along and The New Deal gave a lot of need to those in need the help they really desired. Although WWII was helping America from its depression, FDR’s

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1059 Words | 5 Pages

Millions had lost their jobs, their homes and they were hungry. The nation was in crisis and Roosevelt took advantage of this situation. During the 1932 presidential election, Franklin Delano Roosevelt promised a “new deal for the American people.” Roosevelt sent Congress several proposals to fight the Depression. These proposals collectively would become known as the New Deal.

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When the stock market crashed people lost sixteen million shares worth of stock. When World War I ended in 1918, people started spending more money than they used to and buying things on credit. The 1920s were called “a prosperous boom time.” A new thing to Americans was credit, which we had never had before. A popular saying was “Buy now, pay later!”

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Some of these including the Agricultural Adjustment Administration (AAA), the Public Works Administration (PWA), the Civilian Conservations Corps (CCC) and the Tennessee Valley Authority (TVA). In addition to programs targeted for providing economic relief for workers and farmers and also creating jobs for the unemployed, Roosevelt initiated a reform of the financial system, in which Federal Deposit Insurance Corporation (FDIC) and the Securities and Exchange Commission (SEC) was created. The purpose of the FDIC was to protect depositors’ accounts. While the SEC was used to regulate the stock market and prevent any kind of abuses that were present in the 1929 crash (history.com).

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636 Words | 3 Pages

The Agricultural Adjustment Act (AAA) paid farmers to not plant things, or to just not bring that food to the market to prevent overproduction and low prices. People felt this was a waste and hated the program, the supreme court agrees with the people which leads to an unhappy FDR. The Home Owners' Loan Corporation gave lower interest rates on people's homes Civil Works Administration (CWA). It was to provide temporary jobs to see folks through a short period but it was criticized because not all of the jobs were sincere and some simply involved giving people taxpayer money.

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The Savings and Loans institutions were made in United States to provide common people with low interest loans to built houses. During the period of Great Depression in 1930s, banks went through huge losses nationwide. At that time, these institutions emerged as successful institutions. Though they suffered losses, some depositors withdrew their money from them. But Savings and loans institutions recovered from those losses successfully.

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