Posts Tagged ‘sub-prime’

This case is not as clear-cut as shady characters selling subprime paper while telling investors they were investing in safe government back student loans. Here is this case:

Just use our search box to look up “Paulson” and you will see a problem. Henry Paulson was in charge at Goldman-Sachs, and is now the treasury secretary. In August 2007 Paulson said he did not see anything that caused him to reconsider his view that the economic damage from the housing correction was “largely contained,” despite losses in a number of financial institutions and a long period for sub-prime issues to move through the economy. We thought he was short-sighted, lying, or manipulated by politics. Now he wants a free reign to spend $700 billion.

Federal Reserve Chairman Ben Bernanke said “Proposed changes to mortgage lending rules are intended to protect borrowers from market abuses and boost market competition”. My bone of contention regarding the subprime fiasco, is that rules were in place to help protect consumers.

The European Central Bank raised their interest rates by a relatively modest .25 %. The logic behind such a move is to stem the tide of inflation. The Federal Reserve Board decided against raising rates at this time.

The European Central Bank raised their interest rates by a relatively modest .25 %. The logic behind such a move is to stem the tide of inflation. The Federal Reserve Board decided against raising rates at this time.

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