I was b*tching about bad loans back in 2001. I actually changed parties on March 15, 2001 and posted it on FR. But read the links I provided. Its a lot more than the simplistic “the banks twisted the poor widdle bank’s arm.” From Issa’a GOP report from house, CRA loans were never more than 3% of originations. The CRA fault seems to be that doc standards were first lowered with those loans, and the lenders were pleasantly surprised by low default rate. The default rate shot up thought when middle class and rich started getting loans. Not CRA ones. They had enough savvy to tell banks to “stuff it” when they got upside down.
Please read the links. Do you want one to Issa’a Report?
parsy, who has read up on this stuff
I really don’t need to read those kind of excuses again...yes, the banks and all capitalistic enterprises were to fault...but why is that? It was because the government made it a risk free enterprise! If you don’t understand that than I am wasting my breath. Fannie Mae and associated groups that were backed by government monies made all of that possible!!