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Tuesday, March 02, 2010

Report: Recession More Than Just a Subprime Mortgage Crisis

A new report provides the complete story on the global financial meltdown.

Read about it at Conservative Examiner.

Here is an excerpt:

A new report issued today by the National Bureau of Economic Research indicates that the present severe recession is much more than simply a subprime mortgage crisis.

No doubt the government's policy of applying pressure to mortgage lenders via FannieMae and FreddieMac to lend money to those unable to afford mortgages was a major contributor to the financial meltdown.

However, the NBER report indicates that the problem is much deeper.

In order to understand the problem one must become familiar with a little-known entity by the name of REPO--the Renew Sale and Repurchase market for collateralized securities:

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