This podcast episode explores the consequences of raising interest rates in an attempt to combat inflation, the challenges and unique position of AIG in the financial crisis, the controversy and implications of the AIG bailout, the downsizing and de-risking process of AIG, the historical background and significance of Fannie Mae and Freddie Mac, the government's involvement in the mortgage finance market, the substantial reforms during the conservatorship of Fannie Mae and Freddie Mac, the profitability and ownership structure of Fannie Mae and Freddie Mac, the potential for mezzanine financing to fund affordable housing projects, and the challenges and potential solutions for construction lending in the housing market. It emphasizes the need for adequate housing, concrete solutions, and political action to address the housing problem and bridge the gap between public concern and political response.
