Testimony on the subprime lending diaster and the current economic issues.

The subprime boom is over; the bust is here.

Media inquiries: Veronique Rodman202.862.4870 (vrodman@aei.org)

FOR IMMEDIATE RELEASE: June 13, 2007

More and more Americans are defaulting on their mortgages, and foreclosures rates are skyrocketing because of risky subprime loans. It appears that many troubled subprime borrowers had not understood the obligations they were undertaking. Yet,...

The Shadow Financial Regulatory Committee would like to correct the perception that subprime lending is responsible for the turbulence in financial and housing markets that has emerged in recent months and disagrees with calls for massive federal intervention into mortgage markets.

What the deflating housing bubble means for the economy.

The subprime boom in the housing marketis over; the bust is here.

Over the last decade, the U.S. housing market has experienced an unprecedented increase in housing values and credit availability, particularly in the area known as “subprime” lending for buyers with less-than-perfect credit. In the last two years, according to the comptroller of the currency, 20 percent of all mortgage originations...