"There are, in fact, three distinct concerns associated with the rising tide of foreclosures in America.
One is financial stability: as banks and other institutions take huge losses on their mortgage-related investments, the financial system as a whole is getting wobbly.
Another is human suffering: hundreds of thousands, and probably millions, of American families will lose their homes.
Finally, there’s injustice: the subprime boom involved predatory lending — high-interest loans foisted on borrowers who qualified for lower rates — on an epic scale. The Wall Street Journal found that more than 55 percent of subprime loans made at the height of the housing bubble “went to people with credit scores high enough to often qualify for conventional loans with far better terms.”"
Paul Krugman says the administration's subprime mortgage plan will help investors some, homeowners a little, and predatory lending victims specifically not at all.
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