Incredibly, at this critical juncture in financial history, after which so much changed so quickly, the only constraint in the subprime mortgage market was a shortage of people willing to bet against it.— Michael Lewis
Most Powerful Subprime quotations
I don't see (subprime mortgage market troubles) imposing a serious problem.
I think it's going to be largely contained.
I think Obama has redefined the Democratic Party.
It used to be the party of acid, amnesty, and abortion, and now it's surrender, socialism, and subprime mortgages.
The impact on the broader economy and financial markets of the problems in the subprime markets seems likely to be contained.
The Germans made just about every bad investment you could have made in the last 10 years. They invested in Icelandic banks. They invested in Greek government bonds. They were heavy into Irish banks, big into Irish banks, and they bought U.S. subprime mortgage bonds.
Home ownership was the fig leaf for the rise in subprime lending.
But that was really about cash-out refinancings, not buying homes.
What the mortgage bubble was all about was big banks like Goldman Sachs taking big bundles of subprime mortgages that were lent out largely to low-income, highly risky borrowers, and applying this kind of magic-pixie-dust math to these bundles of securities and slapping AAA ratings on them.
The subprime disaster was a result of financial bombs - derivatives - exploding in financial institutions such as AIG and Lehman Brothers, as well as banks and financial institutions throughout the world.
The Nasdaq bubble and crash were followed by the real estate bubble then subprime crash, which led to the unprecedented printing of trillions of dollars in an attempt to prevent a global depression.
The working poor are the people suffering out subprime mortgages and fatal loans and more and more of our money - you know, capitalism is operated by extracting money, not so much directly being paid.
At the center of every recession is a serious imbalance in the economy and mirrored in the financial system. Think subprime mortgage and the Great Recession, or the technology bubble and the early 2000s recession. There are no such imbalances today.
What caused the economic collapse 2008? It was the subprime mortgage crisis.
There are clear patterns of discrimination against Blacks and Latinos.
The big banks targeted Blacks and Latinos with toxic packages of subprime predatory lending.
In the debate between those who believe in essentially unregulated markets and others who hold that reasonable regulation diminishes market excesses without inhibiting their basic function, the subprime situation unfortunately provides ammunition for the latter view.
In the distance, I see a frightful storm brewing in the form of un-tethered government debt. I choose the words -“frightful storm' - deliberately to avoid hyperbole. Unless we take steps to deal with it, the long-term fiscal situation of the federal government will be unimaginably more devastating to our economic prosperity than the subprime debacle and the recent debauching of credit markets that we are working right now so hard to correct.
Between the Community Redevelopment Act, requiring banks to make what I would call very weak loans, and specific quotas that the Congress imposed on Fannie Mae and Freddie Mac, that created the market demand that really led to the subprime phenomenon.
I and others were mistaken early on in saying that the subprime crisis would be contained. The causal relationship between the housing problem and the broad financial system was very complex and difficult to predict.
We do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system.
University administrators are the equivalent of subprime mortgage brokers selling you a story that you should go into debt massively, that it's not a consumption decision, it's an investment decision. Actually, no, it's a bad consumption decision. Most colleges are four-year parties.
You need to really scrub your investment portfolios, because I guarantee you, many of you are going to find them chock-full of subprime carbon assets.
I look at subprime lending and I see the American dream in action.
That eerie hissing you hear may well be the air beginning to seep out of the green energy bubble. The sound is similar to the pfffffft and sshhhhsssssp noises we heard in the early days of the dot-com bubble collapse or the subprime mortgage meltdown.