Fannie and Freddie cannot plausibly explain a multi-state global crisis

Evidence

Hence the still-manic finger-pointing at Fannie and Freddie, despite their ability to generate a global crisis being zero. There’s only one Fannie and Freddie, and yet we have multiple states in crisis. — Mark Blyth, Austerity, 726

Categorization

• XREF: Connects to Blyth’s broader argument in this book about how the ‘austerity = growth’ narrative misidentifies the crisis’s causes, and to the Mattei account of austerity policy responses to the 2008 crisis. — connects to: Fannie and Freddie did not cause the subprime lending explosion — Philip Mirowski, Never Let a Serious Crisis Go to Waste, 878; Efficient market theory could not imagine internally-generated systemic crisis — Mark Blyth, Austerity: The History of a Dangerous…, 130; The efficient-markets hypothesis simultaneously justifies state failure and enabled the financial crisis — Philip Mirowski, Never Let a Serious Crisis Go to Waste, 150 (+2 more)

Broader Connections

• Orthodox economics models structurally excluded the possibility of major crises #expands (0.80) — Philip Mirowski, Never Let a Serious Crisis Go to Waste, 491
• Efficient market theory could not imagine internally-generated systemic crisis #expands (0.75) — Mark Blyth, Austerity, 130
• The efficient-markets hypothesis simultaneously justifies state failure and enabled the financial crisis #corroborates (0.75) — Philip Mirowski, Never Let a Serious Crisis Go to Waste, 150
• A two-state model cannot explain institutions that are both free and constrained. #complicates (0.70) — Hall, Stuart, Essential Essays, Volume 1, 857