Posted on 12/21/2012 8:24:03 AM PST by raygunfan
A new study from the widely respected National Bureau of Economic Research released this week has confirmed beyond question that the left's race-baiting attacks on the housing market (the Community Reinvestment Act
(Excerpt) Read more at examiner.com ...
When the next collapse comes from our federal debt, the GOP will be blamed again, along with capitalism and free markets.
The MSM are willing tools of the totalitarians. No progress can be made as long as they exist as currently configured.
We've got to find a away to deal with them.
AND, they knew the market would crash in 2008 long BEFORE it happened.
Bump
It claims the rumor that Obama sued Citibank for not lending to minorities is mostly false. (This is the case that moved Clinton to strengthen CRA).
It then goes on to explain that Obama got $23,000 for working on the case!
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Is there a link to this study? I couldn’t find it in the article.
Bump
works here!.. using smart phone.
Is your phone smart enough to find a link to the study mentioned in the article and post it here?
Two books Paul Sperry’s “The Great American Bank Robbery” and Tom Sowell’s “The Housing Boom And Bust” proved beyond a shadow of a doubt that Bill Clinton and his loyal flunkies Andrew Cuomo and Janet Reno are the people-criminals most responsible for the the 2007 financial disaster. All three should be breaking rocks for their criminal actions.
Amazing how the radical marxist left continues to lie and blame everyone else for their evil .
Even Wiki has admitted GOVT. created this artificial bubble:
1930s
1933-1939 The New Deal is a group of new laws created to fix problems in the Great Depression economy, including methods to increase home ownership.
1934 The National Housing Act of 1934, part of the New Deal, makes more affordable housing and home mortgages. It creates the Federal Housing Administration (FHA) (later United States Department of Housing and Urban Development, HUD) and the Federal Savings and Loan Insurance Corporation.
1938 Fannie Mae is founded by the government under the New Deal. It is a stockholder-owned corporation that purchases and securitizes mortgages in order to ensure that funds are consistently available to the institutions that lend money to home buyers.
[edit]1968 - 1991
1968: As part of the Housing and Urban Development Act of 1968, the Government mortgage-related agency, Federal National Mortgage Association (Fannie Mae) is converted from a federal government entity to a stand-alone government sponsored enterprise (GSE) which purchases and securitizes mortgages to facilitate liquidity in the primary mortgage market. The move takes the debt of Fannie Mae off of the books of the government.
1970 Federal Home Loan Mortgage Corporation (Freddie Mac) is chartered by an act of Congress, as a GSE, to buy mortgages on the secondary market, pool them, and sell them as mortgage-backed securities to investors on the open market. The average cost of a new home in 1970 is $26,600 [2] ($140,582 in 2007 dollars). From 1960 to 1970, inflation rose from 1.4% to 6.5% (a 5.1% increase), while the consumer price index (CPI) rose from about 85 points in 1960 to about 120 points in 1970, but the median price of a house nearly doubled from $16,500 in 1960 to $26,600 in 1970.
1974: Equal Credit Opportunity Act imposes heavy sanctions for financial institutions found guilty of discrimination on the basis of race, color, religion, national origin, sex, marital status, or age.
1977: Community Reinvestment Act passed to encourage banks and savings and loan associations to offer credit to minority groups on lower incomes or owning small businesses 12 U.S.C. § 2901 et seq.).[3][4] Beforehand, the companies had been engaging in a practice known as redlining.
July, 1978: Section 121 allowed for a $100,000 one-time exclusion in capital gain for sellers 55 years or older at the time of sale.[5]
1980: The Depository Institutions Deregulation and Monetary Control Act of 1980 granted all thrifts, including savings and loan associations, the power to make consumer and commercial loans and to issue transaction accounts, but with little regulatory oversight of competing banks; also exempted federally chartered savings banks, installment plan sellers and chartered loan companies from state usury limits.[6] The cost of a new home in 1980 is $76,400 [7] ($189,918 in 2007 dollars).
1981: The Section 121 exclusion, allowing for a one-time exclusion in capital gain for sellers 55 years or older at the time of sale, was increased from $100,000 to $125,000.[5]
1981: Each Federal Reserve bank establishes a Community Affairs Office to ensure compliance with Community Reinvestment Act.[8][9]
1985–1991: Savings and Loan Crisis caused by rising interest rates and over development in the commercial real estate sector, and exacerbated by deregulation of savings and loan lending standards and a reduction in capital reserve requirements from 5% to 3%.[citation needed]
1986: The Tax Reform Act of 1986 eliminated the tax deduction for interest paid on credit cards, encouraging the use of home equity through refinancing, second mortgages and home equity lines of credit (HELOC) by consumers.[10]
1986–1991: New homes constructed dropped from 1.8 to 1 million, the lowest rated since World War II.[11]
1989: One-month drop in sales of previously owned homes of 12.6 percent.;[12] Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) enacted which established the Resolution Trust Corporation (RTC), closing hundreds of insolvent thrifts and moved regulatory authority to the Office of Thrift Supervision (OTS); required federal agencies to issue Community Reinvestment Act ratings publicly.[13]
1990: The average cost of a new home in 1990 is $149,800 [14] ($234,841 in 2007 dollars).
1991–1997: Flat Housing prices.
1991: US recession, new construction prices fall, but above inflationary growth allows them to return by 1997 in real terms.
[edit]1992 - 2000
1992:Federal Housing Enterprises Financial Safety and Soundness Act of 1992 required Fannie Mae and Freddie Mac to devote a percentage of their lending to support affordable housing increasing their pooling and selling of such loans as securities; Office of Federal Housing Enterprise Oversight (OFHEO) created to oversee them.[15][16]
1994: Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 (IBBEA) repeals the interstate provisions of the Bank Holding Company Act of 1956 that regulated the actions of bank holding companies.
1995: New Community Reinvestment Act regulations break down home-loan data by neighborhood, income, and race; encourage community groups to complain to banks and regulators by allowing community groups that marketed loans to collect a brokers fee;[17] Fannie Mae allowed to receive affordable housing credit for buying subprime securities.[16]
http://en.wikipedia.org/wiki/Timeline_of_the_United_States_housing_bubble
the user, is the key..read the article / links. :-)
I know... There were a lot of links in the article, but I couldn't find one to the original study. I'll look again.
all anybody needs to know ...is that George Bush kept unemployment under 5.5%..until the Dems captured Congress in 2006.....
wasnt schmucky schumer in on this when he purposely leaked a letter about some bank becoming insolvent, in sept 07?
from what i can recall, that started the run on the bank, and the domino effect...
As you, I've believed that Schmucky was trying to start an economic crisis when he went public with his letter to the FDIC concerning the problems at IndyMac -- a California bank.
At the time, the FDIC was trying to find a buyer for the bank -- so as to avoid a run.
This was in September, 2008, by the way. And when Schmucky's gambit didn't send the economy into the dumpster, the Dems then had to pull the plug on Fannie Mae and Freddy Mac to get what they wanted.
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