Bernanke Admits, Subprime Mortgages The Cause

Writing risky mortgages, under legal duress from the likes of ACORN, Obama, the Black Congressional Caucus, Chris Dodd and Barney Frank, turned out to be not so lucrative for American bankers as it was promised.

Not so lucrative for Americans, either. Financial cataclysm does not begin to describe it.

No problema. Let Americans learn to live again via the WPA; Obama’s hope.

The Obama depression will last at least ten years, or until the next war, whichever comes LAST if history repeats itself again. With Obama defending America, war is apt to come soon, indeed (as Joe Biden predicted).

Let Them Eat WPA Jobs, Again

Let Them Eat WPA Jobs, Again

Subprime Mortgages the Root Cause

Federal Reserve Chairman Ben Bernanke acknowledges he was wrong in believing that there would be limited fallout to financial markets from risky mortgages that soured after the housing market’s collapse.

“I and others were mistaken early on in saying that the subprime crisis would be contained,” Bernanke said in an article in the Dec. 1 issue of The New Yorker magazine.

“The causal relationship between the housing problem and the broad financial system was very complex and difficult to predict,” he said in the piece titled “Anatomy of a Meltdown.”

Subprime mortgages made to people with tarnished credit or low incomes were especially hard hit once the housing boom went bust. Foreclosures spiked and financial companies wracked up huge losses as these investments turned bad.

The mortgage meltdown started in the United States in the summer of 2007 and rapidly spread to other countries, as well as to other types of lending, affecting even more creditworthy customers. The problems with risky, subprime mortgages touched off what many call the worst financial crisis to hit the world since the 1930s.

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