Extra Credit, Tuesday Edition

Alphabet Soup and the Subprime Crisis: Did SWFs kill the M-LEC?

The NYT Invents "Basic Economics" To Hide Upward Redistribution

Now, Even Borrowers With Good Credit Pose Risks: The risk that borrowers with good credit will walk away from their homes. The word "non-recourse" does not appear. We need much more information on the number of non-recourse mortgages written in the past couple of years.

"These are not normal times": Hank Paulson interviewed by the LA Times, clarifying his stance on the GSEs buying jumbo mortgages:

I am not an advocate of, on a permanent basis, having Fannie and Freddie have their loan limit raised and getting into the jumbo area. I think it involves difficult public policy questions and flies in the face of their affordable housing mission... I do believe it makes sense now -- these are not normal times -- to raise the limit for a limited time, to let them get involved with jumbo loans for securitization purposes.

Posted by Felix at 0:00 EST