tag:blogger.com,1999:blog-15329279.post3317198289769551303..comments2023-08-25T05:18:29.312-06:00Comments on Madville Times: Community Reinvestment Act Not to Blame for Mortgage Collapsecaheidelbergerhttp://www.blogger.com/profile/03261598066395322681noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-15329279.post-636804431248839522008-10-27T21:44:00.000-06:002008-10-27T21:44:00.000-06:00Well, you do well to prove that facts can be under...Well, you do well to prove that facts can be understated to prove any point that supports your agenda.<BR/><BR/>1st- The CRA was created in '77, as you claim, and at the time did what it was supposed to, vis-a-vis reinvesting in local communities. HOWEVER, in '95, under Clinton, the powers of the CRA were EXPANDED, and it was allowed to compel thrifts/banks to make loans more accessible to unqualified home buyers under threat of dire consequences such as losing FDIC protection. <BR/><BR/>2nd- Fannie Mae and Freddie Mac were the next villians, in that that they took advantage of this new infrastructure direction. While they didn't make the brunt of the loans themselves, they were given the power to securitize loans made by smaller banks/thrifts, whom in turn were ostensibly "guaranteed" by these govt. sponsored entities (GSE's). Barney Frank, Chris Dodd, and Charlie Schumer helped to block regulation which would have reigned in much of the abuse. <BR/><BR/>3rd- Wall street took advantage of the new infrastructure created by the CRA, and Fannie/Freddie, by packaging up these bad loans and selling or brokering them locally and overseas. <BR/><BR/>However, boiled down the Community Reinvestment Act editions in 1995 CREATED the INFRASTRUCTURE, and Fannie/Freddie CREATED the VEHICLES for the impending bad credit meltdown. And, the Dems, led by Frank, Dodd, and their respective cronies refused to allow tightened regulation. <BR/><BR/>So, if your'e going to tell the story... tell the WHOLE story, and not just the bits that fit your wildly distorted agenda...Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-15329279.post-25262159205253485002008-10-17T08:35:00.000-06:002008-10-17T08:35:00.000-06:00Ha, ha, ha. The Federal Government has been regula...Ha, ha, ha. The Federal Government has been regulating banks since like forever. They are the ones who all but forced banks to issue those loans. Do you really believe banks would intentionally loan money to people they believed couldn't afford that house? Do you really believe the Federal regulators would let banks intentionally put their customer's money at risk--money the Feds insure? Maybe you ought to get all the facts.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-15329279.post-60047081031961254882008-10-15T12:57:00.000-06:002008-10-15T12:57:00.000-06:00Corey,Few people place all the blame of the mortga...Corey,<BR/><BR/>Few people place all the blame of the mortgage mess on CRA. However, it is a component of the greater problem. <BR/><BR/>You are correct that CRA loans are not the major cause of the sub-prime mess (Fannie is the greatest). <BR/><BR/>However, CRA loans are by definition higher risk loans and experience higher default rates during stressful times. Banks are experiencing significant capital problems and the losses related to CRA is compounding the problem, esp. because CRA loans are not usually able to be bundled but are instead held locally.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-15329279.post-14943096910596465232008-10-15T11:44:00.000-06:002008-10-15T11:44:00.000-06:00So, Fox Viewer 10:15, are you just going to ignore...So, Fox Viewer 10:15, are you just going to ignore all data and choose to believe what you want to believe? Guess there's not much I can do about that... though I'll still encourage you to read the links I provide, as they pretty directly rebut the baloney you cite. It's just like welfare: you can probably find instances where poor folks have caused some problems, but the much greater financial harm comes from the corporate abusers. <BR/><BR/>Again, when the rich wage class warfare on the poor and middle class, you shouldn't be surprised when someone wages war back.caheidelbergerhttps://www.blogger.com/profile/03261598066395322681noreply@blogger.comtag:blogger.com,1999:blog-15329279.post-74358648791824590452008-10-15T09:16:00.000-06:002008-10-15T09:16:00.000-06:00Anonymous said... We can all find articles and sta...Anonymous said... <BR/>We can all find articles and statistics to back up our arguments. Greed, lack of regulations, AND loosening of the criteria for loans all had a part to play in this mess. <BR/><BR/>could not have said it better myself..............Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-15329279.post-23653332192454663372008-10-15T09:15:00.000-06:002008-10-15T09:15:00.000-06:00We can all find articles and statistics to back up...We can all find articles and statistics to back up our arguments. Greed, lack of regulations, AND loosening of the criteria for loans all had a part to play in this mess. <BR/><BR/>http://www.foxnews.com/story/0,2933,424945,00.html <BR/><BR/><BR/>http://www.lewrockwell.com/dilorenzo/dilorenzo125.htmlAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-15329279.post-56732567882357509452008-10-15T07:39:00.000-06:002008-10-15T07:39:00.000-06:00Cory, Cory, Cory -- Don't you EVER learn??? Facts...Cory, Cory, Cory -- Don't you EVER learn??? Facts have no application in the world of the looney-tunes!!Anonymousnoreply@blogger.com