Federal Bail-out, Return to the Source?

When the news hit the street, subprime borrowers took the first hit. No one seems to remember the sequence of federal manipulations or new mortgage terms, which were onerous to the point of being predatory. Terms which were deceptive and misrepresented by the mortgage brokers and lenders. Everyone in the industry wants to wheel and …

Bush and Greenspan point fingers like 8 year olds

Very few think Alan Greenspan’s retirement was anything but a timely decision before his juggling act fell apart. Of course hindsight is clearer for most, but not for economists. A wonderful trait of economists is hindsight and foresight are often both in clear focus. For example, when HSBC bought predatory lender Household International, leadership at …

The Fed’s Contribution to Mortgage Blues

According to Alan Greenspan the housing bubble had far less to do with the Fed¬ís policy on interest rates than on a global surplus in savings that drove down interest rates and pushed up housing prices in countries around the world. Many Fed officials counted on the housing boom to prop up the economy after …

Fed wants new regulations while the states do the work

Before making more rules and regulations to control subprime borrowing we suggest enforcement of existing rules. Why did the government set aside the final quarter of 2007 to review non-bank lenders? Warning signs existed as far back as 2002. Ameriquest paid a predatory lending fine not too long ago. The states took enfiorcement action against …