Subprime Warnings

In a recent post I shared excerpts from a 1999 New York Times article which warned of a financial crisis that could stem from sub-prime mortgage lending.

That wasn't our only warning. Here is an excellent news story, complete with clips, from Fox News that illustrates the debate most people ignored over the past several years.

This is a good summary of how the politics of protectionism from Congress shielded these at-risk banks from close scrutiny until they could no longer withstand the pressures that resulted last year in the sub-prime crisis.