Monday, Jul 14, 2008
Fed Votes Unanimously To Ban Liar Loans
NY Times: Horse, barn door
Snippet of information from Paul Krugman's blog that the Fed has moved to ban lenders from making high-interest, non-verified loans. It's only 5 years too late but they couldn't have interefered with that lovely bubble that brought so much paper wealth to so many, now could they?
"Regarding higher-priced loans, the Fed’s new rules also prohibit lenders from: relying on income or assets that it does not verify to determine repayment ability"
Posted by an bearin bui @ 04:45 PM (390 views) Add Comment
5 Comments
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1. japanese uncle said...
Another bunch of firefighters, saying 'This is exactly why I have been telling you not to smoke in bed!! Don't you ever do it again!' in front of a burnt-out house, without having moved even a finger while the fire was raging.
2. icarus said...
Always fighting the last war.
3. Spotthedog said...
I hope they don't follow suit here. I don't want to have to hire an accountant just to satisfy some over-cautious legislative requirement.
Some people do their own accounts and take responsibility for their own finances but have to self-certify due to self-employment. This kind of nanny state interference treats us all like children.
4. planning4acrash said...
Orchestrated boom, orchestrated crash. Goodbye USA, Canada and Mexico, dollar's and Peso. Hello Corporatist North American Union and the stinking Amero. The post Soviet 3rd way.
5. jonb said...
Planning4acrash,
The Canadian Dollar is looking a bit bubbly at the moment, but some of that value is justified by fundamentals. The banks, Royal Bank of Canada in particular, do seem to be in better shape than other banks around the world, and the vast amounts of farmland, energy and water resources relative to their population size will help them when other countries are facing difficult times.
When the Canadian Dollar does return to more sensible valuations, this will be good news for Canadian jobs.
I wouldn't put my money in Canadian Dollars or Canadian shares at the moment because of the risk of exchange losses, but people in Canada can feel a bit more secure about their future than people in other countries.