I worked on Wall Street for years, no one on Wall Street blames the CRA at all, it is simply tea billie racism behind that story
You could put some of the blame on Clinton and dismantling of Glass-Steagall but clearly most of the blame was on W's SEC in 2004 that allowed investment banks to go from 10x leverage to being self regulated
well not in the real world just in the imaginary tea billie world
Community Reinvestment Act had nothing to do with subprime crisis
Posted by: Aaron Pressman on September 29, 2008
Fresh off the false and politicized attack on Fannie Mae and Freddie Mac, today we’re hearing the know-nothings blame the subprime crisis on the Community Reinvestment Act — a 30-year-old law that was actually weakened by the Bush administration just as the worst lending wave began. This is even more ridiculous than blaming Freddie and Fannie.
The Community Reinvestment Act, passed in 1977, requires banks to lend in the low-income neighborhoods where they take deposits. Just the idea that a lending crisis created from 2004 to 2007 was caused by a 1977 law is silly. But it’s even more ridiculous when you consider that most subprime loans were made by firms that aren’t subject to the CRA. University of Michigan law professor Michael Barr testified back in February before the House Committee on Financial Services that 50% of subprime loans were made by mortgage service companies not subject comprehensive federal supervision and another 30% were made by affiliates of banks or thrifts which are not subject to routine supervision or examinations. As former Fed Governor Ned Gramlich said in an August, 2007, speech shortly before he passed away: “In the subprime market where we badly need supervision, a majority of loans are made with very little supervision. It is like a city with a murder law, but no cops on the beat.”
Not surprisingly given the higher degree of supervision, loans made under the CRA program were made in a more responsible way than other subprime loans. CRA loans carried lower rates than other subprime loans and were less likely to end up securitized into the mortgage-backed securities that have caused so many losses, according to a recent study by the law firm Traiger & Hinckley (PDF file here).
No boo boo, the CRA had nothing to do with it
look at you change the subject!! and make excuses!!
If you understood basic economics you'd know that Bush's action had little, if anything to do with the banking crisis. In fact this crisis was set into motion during the Cater administration with the Community Reinvestment Act and exhaserbated in the late 90's (under Clinton) and under the charge of Schumer and Frank (bi-partisan) by forcing banks to make loans that they knew would fail. The failure of the banks due to overrated mortgage backed securities and the resulting wave (auto industry) were all unfortunate but were not Bush directives.
I know you leftists like to blame Bush for everything and frankly I would like to do the same. Bush's fiscal policy was abysmal. The idea that "deficits don't matter" was idiotic. Of course Obama campaigned on the point that Bush was un-American for doing what he did only to have the first $1T deficit in history…followed by I believe 3 more. Anyway, point is you're wrong on nearly every point you made. Furthermore, Obama had a supermajority for 2 years and during that time he still blamed congress for not getting things done.
How many times has Obama traveled to Capitol Hill to address Congress - to bring sides together for the good of the country? State of the Union doesn't count.
Jessica - the trouble is the Democrats haven't been forthcoming. You can spew all the nonsense you like but the reason this investigation (like Fast and Furious and the IRS scandal) take so long to investigate is because of the intentional obfuscation by the Democrats. I'm glad we're able to put Benghazi behind us. It should have been done far quicker but because of the dodging by the Democrats it ended up sucking substantial resources. Look no further than the fact that we're learning today that some of Lerners emails are in fact recoverable. It's a repeat pattern.
WOW, didn't see that one, Jay,... so there IS still hope for America yet!!!
It would be the 3rd GREATEST DAY in American history, 3rd only to July 4, 1776 and November 4, 2014!!!
Hopefully she had her BIBLE with her too.
You know how the evilPOS Mozlum HATES those "gun toting bible hugging AMERICANS."
Guns and Bibles are a threat to HIS eviLLLisliam and his evilMuhamhead.
please post after digesting both of your feet, my friend
Jay,... like you, the whole knows the bloodthirstyy Kenyan was in the situation room for well over 8 hours enjoying watching those 4 Americans die due to HIS stand down order just so he could illegally stay in the white house eating caviar and drinking fine wine like his evilpeer, Baby Doc Duvalier.
The Kenyan freed over 38,000 illegal alien criminals, many of them murderers in the 1st degree like HIM and spread them all across the Nation so that they could infiltrate and help his cause more destruction to our country and commit more murders and crimes.
The Mozlum WILL be brought to justice unless there's none left in these lawless times we're living in, but if there is any, make no mistake, the Mozlum WILL be swinging from the business end of a rope.
And not by his tail.
Actually, Yahoo believes like everyone else that reads yours nonsense that even they need to put the brakes on most of your crackpot delusions at times too.
get much much much closer 2 the the filthy kenyan criminal and take him out, wouldn't that have been great, taken out by a gun toting babe lol lol!! Toooo funny!
Looks like you've almost worn out those brand new knee pads already....
Obama has criminal al Sharpton in the White House advising him now, even though Sharpton it goes back taxes of 4 million dollars because of tax evasion! The Sharpton weasel should be in prison not in the nation's capital as should Ocriminal himself! Right you filthy Yahoo criminals!?