China and the Mortgaging of America: Economic Interdependence and Domestic Politics (International Political Economy Series)

In 2008, the economic relationship between the United States and China almost collapsed due to a crisis at two American mortgage corporations, Fannie Mae and Freddie Mac. This book explains how that crisis came about, and analyzes the consequences and implications. In the summer of 2008 the economic relationship that had developed between the United States and East Asia, and China in particular, stood on the precipice of collapse. The American government avoided a crisis by rescuing two hugely indebted American mortgage corporations, Fannie Mae and Freddie Mac. Thompson explains the origins of the crisis, unravels the domestic politics of home ownership in the United States and analyses the consequences and implications of the crisis. She demonstrates the importance politics, both on the domestic and international front, has played in shaping our understanding of the financial crisis and considers the problems of economic interdependence more generally Front Matter....Pages i-xii Introduction....Pages 1-29 Asian Savings and American Borrowing....Pages 31-50 The Domestic Politics of American Home Ownership....Pages 51-72 Fannie Mae and Freddie Mac and the Mortgage Boom....Pages 73-98 The Crisis of 2007–8....Pages 99-125 Conclusions....Pages 127-150 Back Matter....Pages 151-173 Introduction Asian savings and American borrowing The domestic politics of American home ownership Fannie Mae and Freddie Mac and the mortgage room The crisis of 2007-8 Conclusions.