Posts filed under “Federal Reserve”

We were overdue for a housing related post, and this quote is simply Astonishing:

"Innovation has brought about a multitude of new products, such as subprime loans and niche credit programs for immigrants. . . . With these advances in technology, lenders have taken advantage of credit-scoring models and other techniques for efficiently extending credit to a broader spectrum of consumers. . . .

Where once more-marginal applicants would simply have been denied credit, lenders are now able to quite efficiently judge the risk posed by individual applicants and to price that risk appropriately. These improvements have led to rapid growth  in subprime mortgage lending . . . fostering constructive innovation that is both responsive to market demand and  beneficial to consumers." (emphasis added) 

-Remarks by Chairman Alan Greenspan on Consumer Finance
At the Federal Reserve System’s Fourth Annual Community Affairs Research Conference, Washington, D.C.  April 8, 2005

There’s nothing I can add to his own words that are more damning then, well, his own words.

Category: Economy, Federal Reserve, Real Estate

New Column: Top 10 Myths of Tuesday’s Correction

Category: Economy, Federal Reserve, Financial Press, Markets, Media, Psychology

The Soothing Fed Balm

Category: Federal Reserve, Markets, Psychology

Traders and the Gold “Top”

Category: Commodities, Federal Reserve, Markets, Psychology

Its not China, its the Economy (Stupid!)

Category: Commodities, Currency, Federal Reserve, Index/ETFs, Investing, Markets, Psychology

Quote of the Day

Category: Economy, Federal Reserve

Greenspan Forecasts Recession (Market Expected to Rally)

Category: Economy, Federal Reserve, Psychology

Gold Knows

Category: Economy, Federal Reserve, Inflation

CPI: Precision ex-Accuracy

Category: Data Analysis, Economy, Federal Reserve, Inflation

How Do You Define Your Reality?

Category: Data Analysis, Earnings, Federal Reserve, Investing, Markets, Psychology