Last year, Edward Gramlich published an economic takedown of the mortgage industry, titled Subprime Mortgages: America’s Latest Boom and Bust.
Be sure to note the rooflines on the book cover — they are not so subtle arrows, referencing the "boom and bust" of the book’s subtitle.
In addition to his substantial
knowledge of subprime
and predatory lending, Gramlich was the sort of academic who was able
to see through much of the nonsense within the lending industry.
ignored his warnings of predatory lending and the coming subprime mess says as much about Easy Al’s tenure as FOMC chair
as it does about Gramlich ‘s prescience.
The NYT recently noted: "For more than a decade, even before he was named a governor of the Federal
Reserve Board in 1997, Mr. Gramlich was warning of dangers in the housing
market, a stance that has made him a sought-after expert in the current
As chairman of the Neighborhood Reinvestment Corporation, he urged
legislators to better protect consumers against predatory lenders, and toughen
regulation of mortgage lenders and banks. Nonetheless, his efforts met
resistance within the Fed and on Capitol Hill, and even he admits he could have
pushed earlier for reform."
Last year, despite his advancing illness, Gramlich spoke at length about potential solutions during a televised panel sponsored
by the Urban Institute, where he was a senior fellow.
Fed Governor Edward M. Gramlich
Washington Post, September 6, 2007; Page B07
Being Right Is Bittersweet for a Critic of Lenders
NYT, August 18, 2007