I say Plenty, and long before most people had heard of CDS, CDO, or SIV.
a review of the history of the past few decades shows that regulators were aware of these innovations. They approved of these innovations. They collaborated with banks in constructing these innovations. And they applied pressure and provided incentives to banks to use these innovations.
READER COMMENTS
doug bennett
Oct 5 2009 at 7:41pm
Did you mean low down payments instead of loan in “First, we need to recognize that mortgages with loan down payments are not the solution for affordable housing ?
Arnold Kling
Oct 5 2009 at 9:37pm
Doug, I sure did.
fundamentalist
Oct 6 2009 at 9:10am
The evidence is clear: regulators weren’t asleep at the wheel, paid off by someone, or stupid. They did their jobs according to the regs. The problem was the mainstream (Krugman) economics behind the regs and guiding the regulators.
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