Spitzer warns subprime fallout will be ‘tsunami’ 

Gov. Eliot Spitzer told lawmakers in Washington that the fallout from the subprime crisis could lead to a “tsunami” for the nation’s economy. Spitzer said federal regulators had been “unable or unwilling to take action” to prevent improper subprime lending that led to the tide of foreclosures and massive losses at banks and insurers. He told the House subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises, “It will affect the cost of college loans. It will affect museum budgets. It will affect state and local taxes.”