Comments on: Subprime Mortgages: America’s Latest Boom and Bust http://www.gpplussier.com/2010/04/subprime-mortgages-americas-latest-boom-and-bust/ Business and Financial Tue, 21 Dec 2010 18:19:07 +0000 hourly 1 http://wordpress.org/?v=3.0 By: Loyd E. Eskildson http://www.gpplussier.com/2010/04/subprime-mortgages-americas-latest-boom-and-bust/comment-page-1/#comment-1040 Loyd E. Eskildson Mon, 19 Apr 2010 10:24:28 +0000 http://gpplussier.com/2010/04/subprime-mortgages-americas-latest-boom-and-bust/#comment-1040 "Subprime Mortgages" is a short, balanced, academic review of a major current topic. Gramlich points out that subprime mortgages have increased home ownership from about 64% to 69%, particularly benefiting minorities and those with lower incomes. They have also led to improved loan application processing. <br /> <br />The bad side includes bringing potential abuses from new, largely unregulated mortgage sources, a 10X increase in default rates (some believe their default rate will reach 20X that of "regular" mortgages), and enormous losses in financial markets around the world. (Gramlich failed to mention the likely damage to American financial market credibility.) <br /> <br />Gramlich also points out that 45% of low-income home owners and 57% of renters are now spending over half their disposable income on housing - a too great load by most standards. Rating: 5 / 5 “Subprime Mortgages” is a short, balanced, academic review of a major current topic. Gramlich points out that subprime mortgages have increased home ownership from about 64% to 69%, particularly benefiting minorities and those with lower incomes. They have also led to improved loan application processing.

The bad side includes bringing potential abuses from new, largely unregulated mortgage sources, a 10X increase in default rates (some believe their default rate will reach 20X that of “regular” mortgages), and enormous losses in financial markets around the world. (Gramlich failed to mention the likely damage to American financial market credibility.)

Gramlich also points out that 45% of low-income home owners and 57% of renters are now spending over half their disposable income on housing – a too great load by most standards.
Rating: 5 / 5

]]> By: William J. Darusmont http://www.gpplussier.com/2010/04/subprime-mortgages-americas-latest-boom-and-bust/comment-page-1/#comment-1039 William J. Darusmont Mon, 19 Apr 2010 09:52:54 +0000 http://gpplussier.com/2010/04/subprime-mortgages-americas-latest-boom-and-bust/#comment-1039 I met Ed Gramlich when he was a Fed Governor and was giving a speech at a conference in London. I was impressed by his warmth and candor in a chance meeting before he spoke. <br /> <br />He was very concerned then about mortgages and derivatives and tried to convince Greenspan about monitoring and auditing mortgage companies...sadly it fell on deaf ears. He later resigned from the Fed due to his being diagnosed with cancer and devoted the final months of his life to this book in hopes of stopping what turned into the greatest financial debacle of our time and possibly ever due to the global economy. <br /> <br />It is written honestly and as a thesis, not as propaganda...something that is rare in today's world. Rating: 5 / 5 I met Ed Gramlich when he was a Fed Governor and was giving a speech at a conference in London. I was impressed by his warmth and candor in a chance meeting before he spoke.

He was very concerned then about mortgages and derivatives and tried to convince Greenspan about monitoring and auditing mortgage companies…sadly it fell on deaf ears. He later resigned from the Fed due to his being diagnosed with cancer and devoted the final months of his life to this book in hopes of stopping what turned into the greatest financial debacle of our time and possibly ever due to the global economy.

It is written honestly and as a thesis, not as propaganda…something that is rare in today’s world.
Rating: 5 / 5

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