[logician2u]

It's really telling that the partisans jump on the CRA as the prime cause of the mess, as if it was just the sub-prime mortgages we had to worry about. If that were the case, that $700-billion TARP money which passed Congress last September would have been more than adequate to buy out every defaulted mortgage in the country.

The FED fed the bubble, and its near-zero fed funds rate made it an easy decision for managers to put their money into real estate at 6% instead of overnight loans at .5%.

Malinvestment? You bet it is.

Read Tom Woods' best-seller, Meltdown and watch his 50-minute talk on BookTV. It complements Schiff's videos very well.

[Tired of Taxes]

Thanks for the link to the video. I just finished watching it.

It's really telling that the partisans jump on the CRA as the prime cause of the mess, as if it was just the sub-prime mortgages we had to worry about.

And then, most of the subprime mortgages weren't even made under the CRA. I agree with your post. The CRA is a terrible policy (especially in its current form), and it should be repealed. But, the talk show pundits jumped on it as if it were the biggest culprit. They led many people to believe it was the main reason for the crisis. They had an opportunity to explain to the public about the Fed's role in the crisis and to drive that point home, but they missed it.