Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article

To: Michael Eden
I lay a lot of the blame for the housing finance crisis collapse which has caused the rest of the problems on the “Community Reinvestment Act.”

Maybe the CRA is overreaching and should be overhauled if not repealed. But, the CRA doesn't regulate mortgage companies like the ones that sold all those subprime mortgages to borrowers with bad credit. The CRA only regulates depository institutions like banks, and it requires borrowers to be creditworthy. IMHO, the real culprits are the Federal Reserve for lowering the interest rates thus creating the housing bubble, the companies that sold subprime mortgages to uncreditworthy borrowers, and the borrowers themselves. I know people who lost their homes due to illness/medical bills, and I do have sympathy for them. But, too many others simply borrowed more than they could afford.

Frightening prediction, btw, in that article. All great nations fall, and the politicians and voters have led us into this mess. We'd all better stock up on canned goods, I guess.

48 posted on 11/24/2008 9:39:32 PM PST by Tired of Taxes (Dad, I will always think of you.)
[ Post Reply | Private Reply | To 10 | View Replies ]


To: Tired of Taxes

Actually, the banks WERE forced to reduce their credit policies in order to make loans to minorities.

In fact, Barack Obama was one of the lawyers in a landmark 1994 case vs. Citibank.
http://www.suntimes.com/news/politics/obama/700499,CST-NWS-Obama-law17.article

In addition, the Clinton administration pressured the banks to make such loans. Basically, the banks were forced to make the loans, and were then assured that Fannie and Freddie would guarantee the loans. So they made them like nuts after that.

Too bad people didn’t realize who really caused this meltdown due to media propaganda/disinformation.


51 posted on 11/24/2008 10:15:33 PM PST by Michael Eden
[ Post Reply | Private Reply | To 48 | View Replies ]

Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson