[Hat tip to John, our resident Mr. Universe for locating this- I had a terrible time finding this paper!]Earlier this week the Chicago Fed released a letter entitled, "Comparing the prime and subprime mortgage markets," by Sumit Agarwal and Calvin Ho. The thesis of this paper was: We believe that the subprime mortgage problems are not likely to spill over to the rest of the mortgage market or the broader economy. That’s a line we’ve been hearing a lot, from a number of sources, so I was curious to see how they would substantiate it. It did not appear to…
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