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Subprime Mortgages: America’s Latest Boom and Bust

Posted By Barry Ritholtz On May 8, 2008 @ 7:00 pm In Books,Real Estate | Comments Disabled

Subprime_mortgages_2 [1]

Last year, Edward Gramlich published an economic takedown of the mortgage industry, titled Subprime Mortgages: America’s Latest Boom and Bust [1].

Be sure to note the rooflines on the book cover — they are not so subtle arrows, referencing the "boom and bust" of the book’s subtitle. 

In addition to his substantial
knowledge of subprime
and predatory lending, Gramlich was the sort of academic who was able
to see through much of the nonsense within the lending industry.

That Greenspan
ignored his warnings of predatory lending and the coming subprime mess says as much about Easy Al’s tenure as FOMC chair
as it does about Gramlich ‘s prescience.

The NYT recently noted: "For more than a decade, even before he was named a governor of the Federal
Reserve Board
in 1997, Mr. Gramlich was warning of dangers in the housing
market, a stance that has made him a sought-after expert in the current
crisis.

As chairman of the Neighborhood Reinvestment Corporation, he urged
legislators to better protect consumers against predatory lenders, and toughen
regulation of mortgage lenders and banks. Nonetheless, his efforts met
resistance within the Fed and on Capitol Hill, and even he admits he could have
pushed earlier for reform."

~~~

Last year, despite his advancing illness, 

Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here [2]. You also need to have JavaScript enabled in your browser.

about potential solutions during a televised panel sponsored
by the Urban Institute, where he was a senior fellow.

You can listen to his lecture here [3].

~~~

Related:

Fed Governor Edward M. Gramlich [4]
Patricia Sullivan
Washington Post, September 6, 2007; Page B07

http://www.washingtonpost.com/wp-dyn/content/article/2007/09/05/AR2007090502503.html

Being Right Is Bittersweet for a Critic of Lenders [5]
MICHELINE MAYNARD
NYT, August 18, 2007
http://www.nytimes.com/2007/08/18/business/18gramlich.html


Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2008/05/subprime-mortgages-americas-latest-boom-and-bust/

URLs in this post:

[1] Image: http://www.amazon.com/exec/obidos/ASIN/087766739X/thebigpictu09-20

[2] here: http://www.adobe.com/shockwave/download/download.cgi?P1_Prod_Version=ShockwaveFlash&promoid=BIOW

[3] You can listen to his lecture here: http://www.urban.org/Pressroom/otherevents/upload/Subprime0707Gramlich.mp3

[4] Fed Governor Edward M. Gramlich: http://www.washingtonpost.com/wp-dyn/content/article/2007/09/05/AR2007090502503.html

[5] Being Right Is Bittersweet for a Critic of Lenders: http://www.nytimes.com/2007/08/18/business/18gramlich.html

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