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Is Washington becoming a subprime cheerleader? Add to ...

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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.

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