“President Obama himself has urged banks to ease lending standards so more people can buy cars and homes. Yet subprime loans carry a stigma because of abuses that occurred during the housing bubble of the early 2000s.  The government is sending mixed messages to banks and consumers. Tight credit has been one of the things holding back spending, prompting Obama and other policymakers to plead for looser lending standards. Yet the government is now threatening to punish banks that lend to less creditworthy consumers. If subprime loans were called second-chance loans or opportunity loans instead, maybe prosecutors would show less interest.”

http://finance.yahoo.com/news/the-government-calls-for-more-subprime-lending%E2%80%94then-prosecutes-it-154829221.html

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