Lenders Step Up Financing to Subprime Borrowers – WSJ

Small line of customers (presumably anxious in...

Small line of customers (presumably anxious investors and savers) outside a branch of Northern Rock – a Mortgage specialist and a top UK mortgage lender – in North Street, Brighton, East Sussex. The business (a former “savings and loan” type Building Society which was demutualised in 1997) has been affected in part by problems in the US “subprime” lending market. Picture taken late on Friday afternoon on 14th September 2007. (Photo credit: Wikipedia)

Here we go again as lending to subprime lenders is ratcheted up with increased risk-taking. Check out this latest article in the WSJ.

via Lenders Step Up Financing to Subprime Borrowers – WSJ.

The financial crisis of 2008 started because of irresponsible lending to subprime borrowers. So what’s the chance of a repeat of the Crash of 2008?

Thoughts?

 

Fed’s Dudley Sees Loss of Trust in Banks as Threat to Stability – Real Time Economics – WSJ

It’s the big, bad banks again! This is an important story from the WSJ.

via Fed’s Dudley Sees Loss of Trust in Banks as Threat to Stability – Real Time Economics – WSJ.

Surely, it’s time to break up the big banks?

Thoughts?