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Bad-Mortgage Bailout

Author: /time Magazine | Title: Dashboard: Sep. 17, 2007 | 9/6/2007 | See Source »

Contrary to Bogle's prediction, though, the rise of the credentialed pros and commensurate decline of often ill-informed part-timers haven't stabilized a thing. This year we've seen the professionally managed market for mortgage securities travel from giddy abandon to deep despair in a matter of months...

Author: /time Magazine | Title: Herd on the Street | 9/6/2007 | See Source »

Since 2005, for example, experts had been arguing that mortgage-lending standards had grown unsustainably lax, that real estate prices couldn't keep rising, that a sharp housing correction was in the offing. They were right. But those who actually worked in the business of writing, packaging and investing in...

Author: /time Magazine | Title: Herd on the Street | 9/6/2007 | See Source »

Can anything be done to halt such excess? Keynes proposed taxing financial transactions to discourage speculation, an idea that remains popular in antiglobalization circles but has never gained traction with U.S. lawmakers. Shleifer favors protecting consumers from some financial-market excesses--via mortgage lending regulations, for example--but is dubious...

Author: /time Magazine | Title: Herd on the Street | 9/6/2007 | See Source »

Legislators are divided on measures that would ease mortgage problems. Proposals include urging federally chartered mortgage companies to help refinance delinquent mortgages held by the kind of people that Bush's plan won't cover.

Author: /time Magazine | Title: Dashboard: Sep. 17, 2007 | 9/6/2007 | See Source »

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