Fed prohibits subprime ‘liar’s loans’
Bob Morris @ Jul 19th 2008 13:23 - Category: Credit crisis
Are they really this clueless? After the housing market collapses in part because of no doc loans, the Fed finally decides they should take action. No little. No late.
But they sure moved swiftly to bail out the investment banks with the temporary ban on naked short selling, didn’t they?
Why didn’t they just enforce the already existing ban on such trading from th beginning? This ban simply guarantees those financials will soar for a while. Free money for traders, is what it is.
Pakistan recently tried such a desperation scheme. When they lifted it, the market plummeted and investors stoned the stock exchange. Hmmm.
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