Tuesday, November 06, 2007

An Explanation of the Subprime Mess from the Wall Street Journal

Tuesday, November 6, 2007 12:01 a.m. EST

Throughout the 1980s and '90s, Congress prodded, even strong-armed, banks into making more mortgage loans to low-income and minority families. Washington enacted anti-discrimination and community lending laws with penalties against lenders for failing to issue riskier mortgages to homebuyers living in poor neighborhoods or with low down payments and subpar credit ratings. And so it was that the modern subprime mortgage market was born....[more]

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