Subprime loans
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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]
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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?
I think you mean to say the GLB. The GLB was the flashpoint that set of predatory lending.
You'll have to check your sources. Bernanke does not blame the CRA (probably because it didn't lead to the meltdown).
Regulatory failure, not low interest rates, was responsible for the housing bubble and subsequent
Nah, I don't share your fixation with the GLB or your refusal to accpet what has been plainly provided for you in black and white.
Likewise, I don't share your fixation with the CRA or your refusal to accept what has been plainly provided for you in black and white. Continue to deny it, spin it anyway you like, but the facts do not line up behind your CRA-subprime-FannieFreddie rhetoric.
Republicans maintain their deregulation ideology despite Bernanke's opionion that lack of oversight was a key deficit leading to the crisis...Republicans repeatedly opposed attempts at regulation and challenged attempts to shore up consumer protections...Republicans not only denied but ridiculed anyone who warned of the impending crisis as late as December 2006.......it's all there, if you are willing to see it.
Likewise, I don't share your fixation with the CRA or your refusal to accept what has been plainly provided for you in black and white. Continue to deny it, spin it anyway you like, but the facts do not line up behind your CRA-subprime-FannieFreddie rhetoric.
Except that what's been plainly provided has been evidence of the Democrat's culpability in the economic collapse and the words of Ben Bernanke, the Fed Chair and Franklin Raines, the CEO of Fannie Mac...the people who should know...pointing the finger right at the CRA.
Except that what's been plainly provided has been evidence of the Republican's culpability in the economic collapse and the words of Ben Bernanke, the Fed Chair ...someone who should know...pointing the finger right at deregulation.
"Democrats have spent years arguing that private lenders created the housing boom and bust, and that Fannie Mae and Freddie Mac merely came along for the ride. This was always a politically convenient fiction, and now thanks to the unlikely source of the Securities and Exchange Commission we have a trail of evidence showing how the failed mortgage giants turbocharged the crisis."
http://online.wsj.com/article/SB10001424052970204791104577110643650732030.html?grcc=21f9cab8bba8ea8beacb01a946b4cb8bZ0&mod=WSJ_hpp_sections_opinion
The opinon section of the already opinionated Rupert Murdoch mouthpiece WSJ is hardly the definitive or final answer on what transpired.