Filed under: Credit Crunch, Economic Outlook — admin @ 1:08 pm
Great article from Reuters on the credit crisis:
By Mark Felsenthal
“WASHINGTON (Reuters) - Former U.S. Federal Reserve Chairman Alan Greenspan told Congress on Thursday he is “shocked” at the breakdown in U.S. credit markets and said he was “partially” wrong to resist regulation of some securities.
“Despite concerns he had in 2005 that risks were being underestimated by investors, “this crisis, however, has turned out to be much broader than anything I could have imagined,” Greenspan said in remarks prepared for delivery to the House of Representatives Committee on Oversight and Government Reform.
“Those of us who have looked to the self-interest of lending institutions to protect shareholder’s equity (myself especially) are in a state of shocked disbelief,” said Greenspan, who stepped down from the Fed in 2006.”
Read the full article:”Greenspan “shocked” at credit system breakdown.”
Filed under: Credit Crunch, Mortgage Industry Trends — admin @ 2:57 pm
Think only mortgage and homebuilding industries are affected by the current mortgage market situation? Think again. The effects just keep spreading.
For example, students in Massachusetts are being denied college loans due to the current market. As BlownMortgage reports:
“The Massachusetts Educational Financing Authority is unable to grant loans to college students this year as it is unable to secure financing due to the condition of the capital markets. More than 40,000 college students will be locked out of financing for their college education due to the beating taken on Wall Street.
This is where it gets really unfortunate folks. Taxpayers bear the burden of a Fannie and Freddie bail out while the companies can still pay out dividends, bear the burden of a Bear Stearns bail out, bail out irresponsible policy and practice and then be shut out of opportunity. Can you imagine explaining to the parents of those kids that your child won’t get an opportunity at college because of the mortgage mess and their taxes will go towards bailing out those very same people who took away that opportunity?”
Click here to read the full post.
So how do we revive the market and restore investor confidence? Tony Garritano weighs in from the technology side here.
