March 24, 2008
The short answer is…yes, it did. It made the mortgage banking industry much more speculative than it was under the former Depression-era banking regulations. The Depression-era banking regulations were designed to, not surprisingly, protect against severe economic recessions and depressions (like maybe what we are moving into now ?) Deregulation also resulted in record levels [...]
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December 6, 2007
President Bush and Hillary Clinton have both called for a 5-year freeze on sub-prime mortgage rates to offset the rising foreclosure rates sweeping the country. From the article: [Treasury Secretary Henry] Paulson, who has been leading the effort to craft a plan, said on Monday that the program would only be available for owner-occupied homes [...]
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