Predatory lending: ten years of warnings

Predatory lending: ten years of warnings

Congress, Fed fiddled as subprime crisis spread

Introduction

A tad bit more than about ten years ago, William Brennan foresaw the collapse that is financial of.

As manager of the house Defense Program during the Atlanta Legal help Society, he viewed as subprime lenders attained profits that are enormous mortgages to individuals who plainly couldn’t manage them.

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The loans had been harmful to borrowers — Brennan knew that. He additionally knew the loans had been harmful to the Wall Street investors purchasing up these shaky mortgages by the thousands. And then he talked up about their worries.

“I think this home of cards may tumble some time, and it’ll suggest losses that are great the investors who have stock in those companies, ” he told people in the Senate Special Committee on the aging process in 1998.

As it happens that Brennan did know how right n’t he had been. Not jPredatory financing: 10 years of warnings

Congress, Fed fiddled as subprime crisis spread

Introduction

A tad bit more than about ten years ago, William Brennan foresaw the economic collapse of 2008.

As manager of the property Defense Program during the Atlanta Legal help Society, he viewed as subprime lenders attained profits that are enormous mortgages to individuals who plainly couldn’t manage them.

Related Articles

The loans had been detrimental to borrowers — Brennan knew that. He also knew the loans had been detrimental to the Wall Street investors buying up these mortgages that are shaky the thousands. In which he talked up about their worries.

“I think this household of cards may tumble some day, and it’ll suggest great losings for the investors who have stock in those companies, ” he told users of the Senate Special Committee on the aging process in 1998.

As it happens that Brennan didn’t understand how right he had been. Not just did those loans bankrupt investors, they almost took along the whole international bank system. Continue reading “Predatory lending: ten years of warnings”