This project seeks to address how government policies can support both private gain and public good with respect to one particular area of public policy--financial markets regulation. It will examine the causes of the markets meltdown, the government responses to the meltdown, and the findings of the Financial Crisis Inquiry Commission. An area of focus will be government housing policy, in particular the role (and future) of the government-sponsored enterprises Fannie Mae and Freddie Mac. The need for a thorough understanding of what happened to U.S. financial markets is an essential first step to enacting policies designed to promote the free and efficient operation of those markets. AEI's Peter Wallison is uniquely placed to undertake such a project. His approach will combine several different elements, including original research and writing, outreach to policymakers and opinion-makers, and hosting public conferences at AEI. As with all of AEI's work, the project is intended to make a substantial, real-world impact. Mr. Wallison's efforts will benefit from and be informed by his service on the Financial Crisis Inquiry Commission that was set up by Congress last year. His work over the course of the next year and a half is intended to ensure that lawmakers address the true causes of the crisis and promote policies that will encourage the flourishing of U.S. financial markets in the future. The project's chief output will be a series of -Financial Services Outlook- essays, which will be compiled into a single volume, published by the AEI Press, and marketed extensively as part of the Institute's growing communications focus. These products are designed to inform the coming debates on this policy area , in both the short and long term. With the likelihood that the incoming Congress will turn to these matters with a determination to get policy right, this project has the potential to impact decisively the new deliberations over U.S. financial markets.