what steps is the government taking to minimize the subprime mortgage crisis?

Answer 1

It's hardly a crisis. There are some idiots who thought they could become wealthy buying and selling houses. If they were that stupid and lost their houses they deserved what they got. Not the government's responsibility. If it reaches a point where the rest of the economy is effected then they can step in. They should not be in the business of bailing out the irresponsible. A minute percentage of the population is hardly a crisis.

Answer 2

Not much. There really isn't a whole lot they can do since the problem has already started. What is happening to limit the exposure of banks in the future? Stricter lending limits. Credit approval guidelines have also become stricter. Many banks have stopped offering the 0% down loans, and most are now requiring the 10% down payment that had become traditional with obtaining a mortgage. The government unfortunately had their hands tied with the subprime market. They had relax credit standards, offer mortgages to people that couldn't really afford them and thus when crunch time hit, the bottom fell out.

Answer 3

Probably nothing if subprime people want to get in debt over their head someone will let them so those people need to learn from their mistakes. They are tightening now so maybe they are learning.