Poeple with bad credit & “zero” down can’t qualify loan anymore. The house demand will even drop more! Meanwhile, tons of foreclosed houses will flood the house market. We will witness the housing market to crash soon.
I did some coding and site design work for a financial PR firm in the late ’90s. (I was young and I needed the money.) Back in those days Arthur Levitt, the SEC, et al. focused all their regulatory attention on micro-cap fraud. Think “Boiler Room.” Sure that problem needed attention, but it diverted the investing public from much greater issues … Enron’s collapse alone cost investors ten times the estimated $6 billion take of micro-cap fraud.
Now the Fed wants to tighten subprime lending standards, months after the sector started to collapse on its own. Really bold action, I say.
I suppose some state AG will make a big stink about the subprime mess in the next few years, just as Spitzer did in the wake of the dot-com crash.
.
