Monday, October 20, 2008
An Avoidable Collapse
The cockroachs who created the subprime mortgage mess have pointed fingers at others as they scurry out sight, but Martin Eakes lays the blame for the subprime mortgage mess exactly where it belongs in Sunday's Durham Herald-Sun.
"Wall Street was the engine; lax supervision from government regulators -- particularly the Alan Greenspan-led Federal Reserve -- greased the wheels. Most subprime lenders were subject to far less regulation and oversight than traditional banks and credit unions."
This mess was avoidable. Martin told Congress almost two years ago that the loss of homes to subprimes would dwarf the loss from Hurricane Katrina, and he advised them of several steps they could take to blunt the effects.
Too bad no one listened.