Crashing the Subprime Party

Discussion in 'Economy' started by coolgeee, Aug 6, 2008.

  1. coolgeee
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    coolgeee Member

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    The subprime mortgage crisis has led to foreclosures.
    As the federal government scurries to prevent the subprime mortgage crisis from sending the economy into a deep recession, many of us are asking why it waited so long to intervene. As it turns out, the government wasn't exactly sitting on its hands. Instead, for reasons that now appear hopelessly shortsighted, an obscure federal agency torpedoed legislation from a handful of states that would have made institutional investors far charier of buying mortgage loans that were likely to go belly-up. If the legislation had been permitted to go into effect, the crisis we now face would probably look a lot less grim. The right question, then, is not why the feds did so little. It's why they did so much.

    more great information here:
    Bush Junta Created the Subprime Mortgage Scam
     
  2. waltky
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    waltky Wise ol' monkey Supporting Member

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    Granny says it's not dat dey underestimated it - dey just didn't know what dey was doin'...
    :eusa_eh:
    Transcripts show Fed underestimated crisis in 2007
    Jan 18,`13 WASHINGTON (AP) -- Federal Reserve officials in 2007 badly underestimated the scope of the approaching financial crisis and how it would tip the U.S. economy into the deepest recession since the Great Depression, transcripts of the Fed's policy meetings that year show.
     
  3. waltky
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    waltky Wise ol' monkey Supporting Member

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    Fed offers BoA back room deal...
    :eusa_eh:
    Promises, Promises at the New York Fed
    March 2, 2013 - TWO weeks ago, I wrote a column about a secret agreement struck in July 2012 by the Federal Reserve Bank of New York and Bank of America. The existence of the confidential deal was disclosed recently in court filings, which showed the New York Fed releasing Bank of America from all fraud claims on mortgage securities the Fed had bought as part of the government’s rescue of the American International Group in 2008.
     

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