“Many of the lenders eligible to receive billions of dollars from the government’s massive foreclosure prevention program helped fuel the housing crisis by issuing risky subprime loans, according to a report to be issued Wednesday by the Center for Public Integrity.” (Washington Post, Wednesday)
Piling new bad incentives on old.
FEE Timely Classic
“The Subprime Crisis Shows that Government Intervenes Too Little in Financial Markets? It Just Ain’t So!” by Lawrence H. White
