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09/15/07
Greenspan didn’t see danger of subprimes
Filed under: General, Mortgages
Posted by: Lillian Wong @ 4:52 pm

WASHINGTON - Former Federal Reserve Chairman Alan Greenspan acknowledges he failed to see early on that an explosion of mortgages to people with questionable credit histories could pose a danger to the economy. In an interview to be televised Sunday, Greenspan said he was aware of subprime lending practices where home buyers got low initial rates only to see them later jacked up, causing severe payment shock. But he said he didn’t initially realize the harm they could do.  More…

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