Monday, September 29, 2008

The over-leveraged home owner

FT writes of policymakers and bankers at the World Economic Forum, calling for more scrutiny and greater co-operation between national regulators.

In particular, I note:

Liu Mingkang, chairman of the China Banking Regulatory Commission, lambasted as “ridiculous” the approach of US regulators to permit 100 per cent-plus mortgages, which he identified as a major cause of the crisis.

You heard nothing about this in today's Pelosi/Reid/Frank/Dodd press conference. The Democrats have their fingers deep into Fannie Mae and Freddie Mac, and are doing everything they can to deflect blame onto the Bush adminstration during this newly-tumultuous election cycle.

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