Posts filed under “Credit”
Rather than respond to the various cheerleaders and pollyannas (Ben Stein, Brian Wesbury, David Malpass, et. al.) who have been telling us how great things are even as recently as this week, I prefer to respond via some humor, culled from around the web.
First up: Long or Short Capital:
by Johnny Debacle
Guy #1: Subprime?
Guy #1: Subprime.
Guy #1: Exposure?
#2: Subprime Jitters.
Guy #2: No, CONTAGION.
#1: But the expected loss on all residential subprime loans is de
minimis to the greater economy.
Guy #2: Liquidity. And
Guy #1: Oh. Fuck.
Guy #1: The end.
And, the always amusing Ben Sargent:
To be filed under "Better-Late-Than-Never" regulatory actions: The Federal Reserve is considering the following changes in Sub-Prime lending disclosures:
The federal financial regulatory agencies today issued proposed illustrations
of consumer information for certain adjustable-rate mortgage (ARM) products
described in the agencies’ Statement on Subprime Mortgage Lending (Subprime
Statement), effective July 10, 2007. The Subprime Statement recommends
communications that ensure consumers have clear, balanced, and timely
information about the relative benefits and risks of certain ARM products. The
illustrations are intended to assist institutions in providing this information.
(Below is a table of the proposed changes)
So is this a case of too-little-too-late, or might this actually accomplish something positive?
What say ye?
The rest of the proposed changes are after the jump . . .