"American consumers might benefit if lenders provided greater mortgage product alternatives to the traditional fixed-rate mortgage," Greenspan said. http://www.usatoday.com/money/economy/fed/2004-02-23-greenspan-debt_x.htm
``It is not the responsibility of the Federal Reserve -- nor would it be appropriate -- to protect lenders and investors from the consequences of their financial decisions,'' Bernanke said. http://www.bloomberg.com/apps/news?pid=20601087&sid=alr7BrANy1ZE&refer=home
What do ARM's have to do with sub-prime? Are you too young to remember, oh way back in like 97 when mortgage rates were 600bp's over the 2 year? Should one not be able to choose between a 9% 30year fixed and a 5% 5 year ARM? Are you advocating that banks borrow at the Fed Funds rate and then only lend out at 200bp over the long bond? Even when he curve is super steep? Do you have a clue?
read the article, fool. it's dated 2004. our current problem comes from low-income and minority borrowers who ended up in abusive SUBPRIME ARM LOANS.. UH DUDHUH DUH DUH. sorry i don't speak your khazarian dialect.