Reuters) - The government's consumer finance watchdog said on Thursday it will force banks to use new criteria to determine whether a borrower can repay a home loan, in an effort to avert the kind of loose lending that helped push the economy into recession.
The markets are forcing the bureaucrats to correct their previous largesse when they encouraged banks to lend subprime in the name of social engineering.
It is simply amazing how the markets eventually catch up with bad ideas -- as the European Monetary Union.
George Dagnino, PhD Editor,
The Peter Dag Portfolio.
Since 1977
2009 Market Timer of the Year by Timer Digest
Portfolio manager
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