Subprime Policies: New Ideas to Tackle the Mortgage Mess

Publication Date: March 2008

Publisher: Center for American Progress

Author(s): Scott Lilly

Research Area: Banking and finance

Type: Report

Abstract:

The precipitous collapse of Bear Stearns Cos., Wall Street’s fifth-largest investment bank and one that had prospered through 85 years of turbulent markets, makes it clear that the current chaos in U.S. credit markets has implications far beyond the million or so families expected to lose their homes in the coming months. It should also provide a clear signal why policies the Bush administration has thus far agreed to put in place do little to address the central challenges presented by the subprime mortgage debacle.