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To: ballplayer
It wasn't Bush's fault. The Community Reinvestment Act didn't require banks to make loans they didn't already want to make. If a president could make banks make loans, Obama would be doing that right now.

Bush just happened to be president when the world went through a serous cyclical deflation and deleveraging. Bush wasn't perfect, but a president can't be held responsible for an international economy. It's too big.

21 posted on 12/08/2012 11:52:38 AM PST by Tau Food (Never give a sword to a man who can't dance.)
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To: Tau Food; ballplayer

The CRA certainly did force banks to make loans that they didn’t want to make. Banks were merging and acquiring like crazy through the whole period and if they didn’t have an exemplary CRA score they wouldn’t get their acquisitions approved. In actuality, banks had to fork out bad loans.

Also, the FDIC was requiring banks to drop traditional lending requirements that had disparate racial impact. That was forcing banks to make bad loans.


43 posted on 12/08/2012 5:56:47 PM PST by 9YearLurker
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