More government money pledged to subprime assets helped to boost the subprime mortgage index on Tuesday.  Most indexes jumped 4 to 6 points on the news that the Fed will inject another $200 billion into the subprime mortgage industry, backing some assets that look terrible to any sane investor.  The subprime mortgage fall out continues [...]

Members of the Federal Reserve Board of Governors have begun talking about the Fed’s plans to begin working with state agencies to ensure that new standards to prevent subprime lending abuses.  As we all know new subprime regulations are only as good as the enforcement that protects them.  We shall see.

Bill Fool, err Poole, St. Louis Fed President noted that the subprime pain is not over yet and urged policy makers to step-in and regulate the (subprime) mortgage industry to ensure stability.  Poole does believe that there is a future for the subprime end of the mortgage market and that it can operate effectively and [...]