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March 17, 2007

Subprime Mortgages

That things have gone wrong in the subprime mortgage business is no surprise. But as ever there's no mess that cannot be made worse by ill thought out government intervention.

The Senate Banking Committee will hold a hearing on Thursday to look into the crisis in the subprime section of the U.S. mortgage market, said Chairman Christopher Dodd.
   

Dodd announced the date of the hearing on Friday, a day after he said the committee would meet next week.    

In a statement, the Connecticut Democrat said "predatory lending practices" endangered home ownership for millions of people. "As chairman, I will use all the powers and tools at my disposal to keep families victimized by predatory loans in their homes and ensure that America's dream of home ownership remains alive," said Dodd.

Dodd has a lot of Wall Street connections and the worry is that his solution will bail out the lenders, his buddies, at huge expense to the public purse. Remember the savings and loan crisis? This will almost certainly turn out to be more of the same.

March 17, 2007 in Investment Scams | Permalink

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Comments

Dodd has shown he can stand up to the financial community and they are taking notice. I hope he continues to look into various credit card issues such as interchange, which digging into the bottom lines of retailers and consumers.

(As a matter of disclosure, I am associated with the Merchants group seeking transparent fees)

Posted by: T | Mar 22, 2007 3:05:16 PM