The funniest thing about this latest admission of incompetence from the Fed is that it'll just help crash the US housing market even faster, as even more lending dries up. This could have helped if done years ago. Now it's too late, and just adds fuel to the fire.
We're run by monkeys HP'ers. Monkeys I tell ya.
Federal Reserve to Unveil Plan to Curb Shady Lending Practices for Home Mortgages
WASHINGTON (AP) -- A Federal Reserve plan being unveiled Tuesday would give people taking out home mortgages new protections against shady lending practices.
The rules to be proposed are especially geared to providing some future safeguards to the riskiest "subprime" borrowers, already painfully stung by the housing and credit debacles. The proposal is expected to apply to new, or future, loans made by all types of lenders, including banks and brokers. The plan could be finalized next year.
The plan, if ultimately adopted, offers Federal Reserve Chairman Ben Bernanke, who took over the helm in February 2006, an important opportunity to put his imprint on the Fed's regulatory powers. Some critics have complained that Bernanke's predecessor -- Alan Greenspan, who ran the Fed for 18 1/2 years -- failed to act as a forceful regulator especially during the 2001-2005 housing boom, where easy credit spurred lots of subprime home loans and many exotic types of mortgages