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robertogreco : fauxpenmarkets   1

U.S. financial crisis spreads toward your wallet | csmonitor.com
"In 2006, well before the financial crisis broke on the shores of the American economy, Ann Lee wrote a 22-page paper on "Wall Street's House of Cards." It warned of the danger to the nation from the sale of trillions of dollars of complex financial products called "structured credit derivatives" ... Seeking a reaction to her paper, she sent it to officials in Washington. Lee received an e-mail reply from Lawrence Lindsey, director of the National Economic Council under the first President Bush, who wrote that "both the practitioners and the regulators are well aware of the risks that are out there," including those in the subprime mortgage market. Mr. Lindsey held that the deregulated mortgage market was "much better" in early 2007 than the more regulated one in 1991, when there were also credit-market problems."
banking  finance  dept  economics  us  derivitives  wallstreet  mortgages  subprime  hedgefunds  regulation  deregulation  fauxpenmarkets  transparency 
september 2008 by robertogreco

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