A new study from the widely respected National Bureau of Economic Research released this week has confirmed beyond question that the left's race-baiting attacks on the housing market (the Community Reinvestment Act--enacted under Carter, made shockingly more aggressive under Clinton) is directly responsible for imploding the housing market and destroying the economy.
The study painstakingly sorted through failed home loans that caused the housing market collapse and identified an overwhelming connection between them and CRA mortgages.
Again, let's review:
-President Bush went to Congress repeatedly for years warning them that Fannie Mae and Freddie Mac were going to destroy the economy (17 times in 2008 alone). Democrats continuously ignored him, shut down his proposals along party lines and continued raiding the institutions for campaign contributions on their way
Sorry but nobody had to twist the arm of the financials to give out subprime housing loans. They were huge moneymakers for the financials. Probably came close to high interest rate credit cards to people with not the best credit ratings. Many of these loans were adjustables with initial higher interest rates than conventional loans and then after one or two years, a steady climb to much higher interest rates. They were also loaded with heavy upfront fees. Most could not afford to keep the loan to term but even if one refinanced afterwards who cared. Between the initial high rate, possible continuation of an even higher rate and the big upfront fees, the bloodbanks made a nice penny on the loan. That is why it was not unusual for some of the salesman making these loans to make as high as $200,000 a year. Also when times were good, even if the person defaulted and the house went into foreclosure, who cared, with housing prices going up like crazy, the house could easily be sold for a profit. So in the go go days, don't just blame the government. It was a money maker that the financials just could not pass up.
How the right wingers lie. The cited report made NO finding hat the Community Reinvestment Ac "is directly responsible for imploding the housing market and destroying the economy."
This is ENTIRELY fraudulent spin, and comes from a single article at a looney reactionary website and endlessly copied verbatim by other Tea Bag sites and then repeated by crazies like the knucklehead deeks, who will post any LIE and unsupportable PROPAGANDA that his bigoted emotions compel.
The TRUTH is that absent the careless collateralization of these loans by the banks and phoney AAA rating by the rating agencies, THERE WOULD HAVE BEEN MINIMAL IMPACT ON THE ECONOMY.
(Of course deeks has not actually READ the report but lets his mind masters govern what he posts.)