Cause: CRA circa 1977 and subsequent expansion in 1995.There was one sole cause of the current crisis and that was deregulation.
Cause: CRA circa 1977 and subsequent expansion in 1995.
Oh really? Massive failure concentrated in SoCal, Phoenix, Las Vegas and Miami. Why should we be so quick to dismiss the idea when the subprime loans were most prevalant in the 'minority' communities?
I'm pretty sure most sane people are blaming the meltdown on lack of government oversight, corporate greed, and an inadequate regulatory environnment....and not on brown people.
There's no fucking way this meltdown can be laid at the feet of brown people. That's just flagrant stupidity and bias.
Did some people of color get in over their heads with mortgages? Yeah, so did millions of white people.
Predatory lending is a well established and researched market phenonmena. Yes, there are dumb people. There's well intentioned people who make mistakes too.
The whole point of having regulations and government oversight is to prevent this kind of shit, to reign in profiteering, and to have a way to balance national interests against the interests of short sighted robber barron pillage.
Otherwise, why even have a freaking government? Why not just be a libertarian?
Notably, the timing is also much better for my sensible theoary, rather than your fanciful, illogical theory, because glass-steagle was dismantled in 2001, while the CRA would have had to have taken forty years to finally cause the gloom and doom racists had been predicting if we allowed teh darkies to have homes.
This is such bullshit. Mortgage lenders want to sell mortgages, and once the regulations were dropped they went to town. This has nothing to do with race. I would urge people to read Sinclair’s “The Jungle” written one hundred years ago. What happened here is documented there, and it’s a swindle. And there is nothing new about it, and it was never dependent on black people to work. Works just as good on whites. I said that I would urge people to read the book…if I thought any of you willfully ignorant people would even bother. There’s nothing like good old racism to get you the through the day. That’s what they depend on you know. Whites, especially but not solely economically disadvantaged whites blaming the blacks, blaming the Chinese coolies, blaming the Irish scum, the Mexicans, there is always someone to blame. So stupid.
I agree, it has little to do with race. It has to do with income.
I'm not a fan of Ann Coulter. I think she's an attention whore who takes away from legitimate points she makes with her style of writing. In her column though she hits on issues that really happened. I don't believe she is attempting to blame the entire financial crisis on these relaxed mortgage standards in an attempt to help more poorer folk and minorities gain home ownership. But it did play a role.
Here is a good article on the trouble Fannie and Freddie were in in 2003 and the response by people claimed the mortgage giants weren't in trouble. The last quote in the story references attempting to get more poorer minorities into home ownership.
""Significant details must still be worked out before Congress can approve a bill. Among the groups denouncing the proposal today were the National Association of Home Builders and Congressional Democrats who fear that tighter regulation of the companies could sharply reduce their commitment to financing low-income and affordable housing.
''These two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis,'' said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. ''The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.''
Representative Melvin L. Watt, Democrat of North Carolina, agreed.
''I don't see much other than a shell game going on here, moving something from one agency to another and in the process weakening the bargaining power of poorer families and their ability to get affordable housing,'' Mr. Watt said."""
http://query.nytimes.com/gst/fullpa...932A2575AC0A9659C8B63&sec=&spon=&pagewanted=2
I agree, it has little to do with race. It has to do with income.