The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content


(NATI HARNIK/AP)

BREAKINGVIEWS

Is Washington becoming a subprime cheerleader?

Reuters Breakingviews delivers agenda-setting financial insight. Its global correspondents react to stories as they develop, delivering sharp and provocative commentary on big financial news as it breaks. Click here to read more international insights.

Washington may be at risk of becoming the new subprime promoter. The White House wants banks to provide riskier taxpayer-backed mortgages, according to the Washington Post. Meanwhile, the Federal Reserve’s ultra-low interest rate policies have helped to boost the number of borrowers with poor credit getting auto loans. It’s no 2007, but it smacks of policy makers ignoring potential bubbles to boost growth. That’s a losing proposition.