Give it up, the reinvestment act did not cause fraud on this level.
It caused a substantial chunk of it.
Henry Paulson though, must be investigated for his own anti-American actions.
You keep posting that, but you are wrong.
The CRA got the sub prime idea rolling.
Then all of the other bad things kicked in, like banks selling sub prime mortgages to get them off their books as described in this article.
That in turn led to the AIG, FM twins doing their thing, etc.
So although the CRA did not in itself cause the problem, it started it.
That is like saying the kids (congress) playing with matches (the CRA interference with proved market principles) did not cause the house to catch fire (the sub prime mortgages), the fire to burn the house (FM twins, AIG, Lehman, etc.)and the residents to die of the burns (unlucky stockholders and taxpayers).
No the matches did not cause it. The kids (our congress) playing with matches (CRA) started the fire.
“Give it up, the reinvestment act did not cause fraud on this level.”
People are desperate to blame black people instead of white gazillionaires. ACORN! Raines!
This is a good article except for the “fraud” allegations. This is not fraud. It is the free market. What is it about freedom people don’t understand? The bailout is like if the govt. stopped regulating road traffic, then covered the liability of everyone who killed someone speeding. Worse, these “fraud”sters are effectively printing money, something which the government regulates within itself.
There won’t be an attempt in the MSM to fathom explanation until after the election. Obama has hitched his star with Bush and the Goldman Sachs bailout, so that cannot be examined closely.
It is a little comforting that Bush’s apocalyptic warnings might be an overreaction via Paulson to narrowly protect Goldman in particular.
The only way to prevent a CRA-induced crash around 2005 was to open the floodgates of fraud to prop up the housing market. Blame the people who decided it would be better to open the floodgates than be caught in a small crash, but were it not for CRA-induced malfeasance, there would have been no driving motivation to open the floodgates to the upcoming major crash.