Free Republic

Anyone doing research into the 2008 subprime mortgage securities scandal inevitably comes across the Internet gem below. Often titled “Derivative markets — an understandable explanation” but more commonly known by its first sentence — “Heidi is the proprietor of a bar in Detroit,” it appears to have been written in 2009 by an author with considerable understanding of financial markets and a great sense of humour. And it provides a good, basic explanation of the origins of the subprime mortgage securities crisis that led to a global credit freeze and the ongoing world-wide economic tsunami from which we may never...

House votes to outlaw 'liar loans'Created: 05/08/2009 2:30 PM WASHINGTON (AP) - The House voted Thursday to outlaw "liar loans," ballooning mortgage payments and other bank practices that lawmakers say preyed on consumers who couldn't afford their homes. The proposal, by North Carolina Democratic Reps. Brad Miller and Melvin Watt, is one of several that Democrats are pushing to tighten controls on an industry that critics say undermined the economy by underwriting risky loans, then passing them off to investors. The bill passed 300-114, with many Republicans contending it would limit consumers' options and restrict credit. Democrats said it would...

MARCH 2, 2009 Call Them Irresponsible Rewarding those who put the 'liar' in liar loans. President Obama continues to insist that only "responsible families" will benefit from his foreclosure prevention program. Addressing Congress last week, Mr. Obama said his plan "won't help speculators or that neighbor down the street who bought a house he could never hope to afford." Sorry, Mr. President. It's becoming increasingly obvious that your plan is going to help tens of thousands of borrowers who put the "liar" into liar loans. Just listen to Federal Reserve Chairman Ben Bernanke and FDIC Chairman Sheila Bair. In Congressional...