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|Thu, 12-01-2011 - 2:50pm|
What is it about the expression "subprime loans", "Fannie Mae and Freddy Mac", and the "CRA" [Community Reinvestment Act 1977] that makes them so frequently cited as the cause of the Money Meltdown?
Personally, I think it is mostly prejudice. In the case of the "CRA" it is simply partisan, anti-Democrat prejudice. In the case of subprime loans (which is erroneously used synonymously with "Fannie and Freddie"), I think it is even worse.
I have come to believe in reading various opinions of regular people on the internet that "subprime loans" is some sort of derogatory way of saying "poor people", "irresponsible people", "those people", "undeserving people". Or Is it just me?
In spite of evidence, such as this NYT article by Edmund L. Andrews December 2007:
In 2001, a senior Treasury official, Sheila C. Bair....worked with [Edward M. Gramlich, a Federal Reserve governor]