And You Thought the Housing Crisis Was Over! The Community Reinvestment Act is back

The American Spectator ^ | July 27, 2012 | William Tucker

[reaganaut1]

Do you remember that thing about how the banks wouldn't lend to blacks and Hispanics because they were racists? And do you remember how they passed the Community Reinvestment Act so that banks were forced to reduce down payments practically to zero and lend to a lot of people they knew were bad credit risks? And do you remember how Wall Street bundled all these risky subprime mortgage and sold them to investors around the world so that when it became clear that those people weren't going to be able to pay their mortgages banks everywhere were left holding the bag and all five of the Wall Street investment houses either went under or had to be bailed out by the federal government?

And do you remember how, when it was all over, liberals said it was actually the banks' fault for "deceiving" all those people into thinking they could afford to buy homes and that the banks should be punished for it and some of those people be allowed to keep their homes anyway? And do you remember how all this cost the government close to a trillion dollars and put the whole economy in a hole that we really haven't begun to dig ourselves out of yet?

Well, get ready because the whole thing is about to happen again.

...

I think what we are witnessing is the looting of America on behalf of minorities in a way that better end soon or we are going to bring the whole system down upon our heads.

With the current administration in power, the perception is growing among minorities that everything in the economy is rigged against them but that President Obama and his administration are going to solve everything for them.

[Liz]

Thanks for the realtime report.

[Arthur Wildfire! March]

God bless you guys! Keeping up on the latest important news I see.

[If I were two people, both of me would be tempted to spend all my time here. So ... I’m not really back yet. But bless you all!]

[khelus]

ROFL. Great pic and comment

[stephenjohnbanker]

Good to hear from you.

[combat_boots]

Ask around. CRA never left. Nor did the ‘experts’ who work it, both in and out of gov’t. The laws never changed.

[neverdem]

This is good news! Too many people still don't understand that the government's insistence on pushing subprime loans was at the root of the financial crisis!

[neverdem]

This is good news! Too many people still don't understand that the government's insistence on pushing subprime loans was at the root of the financial crisis!

[neverdem]

This is good news! Too many people still don't understand that the government's insistence on pushing subprime loans was at the root of the financial crisis!

[METARZAN]

If it means anything my house sold this time last year. Sold for $170K in a really bad market, down maybe 20% from what we expected. The house was sold to a so-called “minority” and only with her signature (only one on loan) with no money down and she had a family income of roughly $45K per year.

I was a bit set-back as we had just experienced one of the largest bubbles ever in housing due to this issue, set back that we were only a year or so removed from the crash and for all practical purposes it was “business as usual”.

[Impy]

Keep it real Art!

[fanfan]

Thanks for the ping.