Where was the Fed a few years ago when Mr Bubble was asleep at the wheel? He ignored the looming subprime catastrophe and gave the green light to tax cuts for the wealthy during a supposed war. I guess they just woke up and read more bad news from GE or the massive losses at NovaStar due to bad loans.
Of course, it could have also had something to do with the Wells Fargo CEO expressing a few minor, insignificant really, concerns with the Bush economy.
"We have not seen a nationwide decline in housing like this since the Great Depression," Stumpf said at a Merrill Lynch banking conference in New York.It's time the Democrats pound the Republicans on this national and international failure. If they can manage to locate a spine, stand up shove it back in the face of the GOP and that buffoon Greenspan who sat there and did nothing as it unraveled.
"I don't think we're in the ninth inning of unwinding this," he continued. "If we are, it's an extra-inning game."
Stumpf's comments came hours after Barclays announced a 1.3 billion pound ($2.7 billion) write-down for losses on securities linked to U.S. subprime mortgages.
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