American taxpayers finally had to rescue them from the brink. But the emaciated, dying appearance didn't stop Fannie Mae and Freddie Mac, the US mortgage giants, from becoming a model on the other side of the ocean.
The crazy - for some - attempts at emulation are all in the heart of the Old Continent. And the Wall Street Journal, intrigued, sent three journalists to Rome, London and Amsterdam to study the phenomenon.
The Dutch government recently announced that it will try to create its own version of Fannie and Freddie to take some pressure off the country's banks and revitalize the housing market. Meanwhile, Italy and England are developing policies to ensure that more and more people buy homes, receiving partial guarantees from the state for certain types of mortgages.
The shift towards direct government subsidies in the European mortgage market took the US business daily by surprise. The plans reflect growing concern among politicians, who believe a shortage of loans will further strain the recovery. But some experts wonder whether these policies could lead to real estate bubbles or a system in which banks are increasingly asking governments to support loans for the most at risk groups.
Fannie and Freddie don't issue loans, they buy them from lenders and turn them into bonds. In 2008, they were bailed out by the Washington government, a move that required more than $150 billion in public money. Meanwhile, the Federal Housing Administration, the US agency that guarantees mortgages for certain classes of borrowers, said last month that it needed a cash injection from the Treasury. In the wake of this situation, various US legislators have indicated Europe as a possible alternative model for mortgages. Too bad that the Old Continent has decided to reciprocate the attentions.
And so, in addition to whisky, soda and rock 'n' roll, there are also mortgages for those who "want to be American". But, points out the Wall Street Journal, “you were born in Italy”. Event that, sometimes, can prove to be salvific.
