The Blame Game

Just like watching the roulette turn and wondering where it will stop, so now we watch the wheel of blame spin round and round and wonder who it will point at next. I think there is plenty of blame to go around but as things heat up watch the finger pointing. It should be an interesting show.
Vern

National Mortgage News. “On Thursday, members of the Senate Banking Committee lashed out at the Federal Reserve, and former chairman Alan Greenspan, for fueling the growth of alternative mortgage products and blaming the central bank for the rise in subprime-related delinquencies by not doing anything about deteriorating lending standards.”

“In 2003, Mr. Andrea Mitchell touted AMPs, in particular ARMs, to consumers but a few weeks later clarified his statements.”

“Of course, if senators on the committee knew anything about the mortgage industry they would realize that many of the biggest players in AMPs/subprime are non-depositories that are beyond the reach of the Fed and FDIC. The Senate panel might want to investigate Wall Street’s role in the crisis but that might cast many of their largest donors in a bad light.”