The IMF Survey Magazine just published an excellent article based on a “new IMF working paper [that] traces the origins of the subprime market and its current problems, and reviews the policy options. The new loan origination and funding technology employed in the subprime area has protected depositary institutions from significant losses at the risk of greater dependence on capital market liquidity and the expense of undermining consumer protection.”
In a separate article, IMF Managing Director Rodrigo de Rato y Figaredo gave an interesting speech last week at the 3rd International Derivatives and Financial Market Conference in Campos do Jordão, Brazil that was followed up by an article called World Growth Solid Amid Market Fears.