There’s an excellent expose in today’s Spectator of the origins of the the US sub-prime mortgage problem in the policies of the Clinton administration. A left-inspired attempt at social engineering by government pressurising the banks to abandon their traditional lending policies (only lend to people who have good prospects of repaying the loan) in favour [...]
Entries Tagged as ‘America’
September 30, 2008
Responses to the crisis
The banking industry seems to have been hit by a ‘perfect storm’. Some people warned it years ago that the development of derivatives was heading it in that direction, but it didn’t listen much as big bonuses were to be made out of ever more and more tortuous financial instruments which disguised bad debt. This [...]
