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You know where just froze over

rose-colored-coolaidrose-colored-coolaid
edited July 2008 in Housing Bubble
For perhaps the first time since I became an adult, the Federal Reserve is behaving rationally.
With no end in sight to the turbulence in the housing and financial markets, the chairman of the Federal Reserve said on Tuesday morning that it would issue new lending rules next week to restrict exotic mortgages and high-cost loans for people with weak credit.

Apparently, it only took one year of general financial crisis (starting last July/August), the near collapse of a major financial player (BSC), the imminent collapse of several lesser players (WAMU, CW, et all), accelerating commodity inflation, general asset deflation, a weakening dollar, and a long drawn out pseudo-recession for the Federal reserve to recognize that maybe it wasn't such a brilliant idea to loan people money they couldn't ever pay back.

Bravo!

Comments

  • NotabullNotabull
    Phew. These rules have come out just in time! If these exotic loans go on any longer we'll have some kind of speculative bubble on our hands.
  • AlanAlan
    Is Ben talking into some sort of reflective bubble?
  • RobroyRobroy
    Notabull wrote:
    Phew. These rules have come out just in time! If these exotic loans go on any longer we'll have some kind of speculative bubble on our hands.
    Not to worry. They are retroactive! 8)
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