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The President of the Federal Reserve In Cleveland Uses the "R" Word

Pinalto was not shy in placing blame for the economy's slide - charging that lax underwriting standards, overly complex products, and excessive leverage lead to much of the housing boom and bust... and that financial leaders were too dependent on models based on historical assumptions, rather than watching how current markets react to changing conditions.

She said the next congress, and the incoming administration, need and no doubt will seek stricter regulation and more government oversight.