Better that the Fed Regulates Subprime Mortgages

The late housing boom, in which borrowers largely forgot that prices can go down as well as up, attracted some unsavory brokers and left many consumers facing foreclosure. The Fed is under great pressure to triangulate between Congressional Democrats' desire for New Deal-style regulation and the Bush Administration's opposition to anything labeled consumer protection. While the Fed may be giving too little consideration to the potential costs in attempting to rid the mortgage market of ill-advised loans, the regulations do look reasonable