argues that runaway subprime lending was one of several “red flags” policymakers might have heeded in advance of the financial crisis.
Buyers with questionable credit, and the financial institutions that issued them mortgages, have received a lion's share of blame for the financial crisis, which was presaged by widespread defaults on subprime mortgages and a collapse in mortgage-backed securities.
According to the WSJ, the firms draw a distinction between what they’re doing now and what took place during the run-up to the subprime crisis. They’re requiring higher down payments than banks would, and seem to believe they’re lending to borrowers who pose less risk than those who defaulted in large numbers a few years ago.
In catering to borrowers with imperfect credit, the firms' behavior is reminiscent of that of Ally Financial, which has been deliberately courting used car buyers with subprime loans despite concerns about risk.
Last week, the WSJ reported that the federal government will likely stop backing mortgage loans above a certain size in October, meaning that come fall, there may be more homeowners seeking "jumbo loans" -- in most cases, a loan above $417,000 -- from private firms.
EXTRA!...EXTRA!... READ ALL ABOUT IT!
Little Man lands lead role in new Broadway Musical, Stop the World.
As this intrepid reporter, reported here, moments ago...the title role, 'Mr. Little Everyman' has, at last, been cast. And, this most coveted role, goes 2 R own, Little Man.
Quoting Mr. Little Man, "As a wee little boy, I can vividly remember looking skyward and speaking directly 2 the stars. "Oh, starry sky, I so wish to play Mr. little Everyman when I grow up that if my wish ever comes to pass, I shall, ever there after, dedicate my life to speaking up, and giving voice, to the hopes and prayers for everyman (and every woman). Now that, at long last, my wish that long-ago night, has been granted. A Little Man of my word, from this night forward, and for the remainder of my days, every night I shall become Mr. Little Everyman and I shall give voice to the hopes, aspirations...to their very Dreams for hope, peace, love and joy in the world...and, more particularly, to grant equal opportunity for children the world over to cast their dreams into their very own starry sky."
Postscript: And, so it came to pass, that for the rest of his days, Little Man would, as day slipped into darkness, Little Man would become the one voice for all the worlds Little Everyman (and woman, too).
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