http://blog.bbbeard.com/2008/10/08/contradictions/ A Peculiar, Yet Refreshing, Blog Sun, 20 May 2012 11:26:08 +0000 http://wordpress.org/?v=2.2.1 http://blog.bbbeard.com/2008/10/08/contradictions/#comment-204 dave Sat, 04 Jul 2009 16:01:46 +0000 http://blog.bbbeard.com/2008/10/08/contradictions/#comment-204 again, most of my reply was deleted. The CRA explicitly forbade lending to people who didn't otherwise qualify for credit. The consensus among bankers subject to the CRA is that it was an unimtigated success, and should in fact be strengthened and expanded Sheila Baird, the Dole protege whose FDIC is the primary overseer of CRA covered institutions, argued insistently that the chorus promoting your view was simply and flatly wrong The subprime fiasco eruped after the FBI warned of an epidemic of mortgage fraud, and still the Bush administration continued to follow their combination of radical laissez-faire/crony capitalism tenets, elminating as much enforcement of regulations-such as the CRA- as they could. To reiterate, for 25 years the CRA failed to cause a credit crisis (and in fact led banks to make , in their view, exceptionally sound and profitable loans), and then largely sopped being enforced:I suppose you could call that "the CRA causing the subprime crisis"- if you were perverse and/or had had a WSJ Editorial pahe pod attached to your brain. again, most of my reply was deleted.
The CRA explicitly forbade lending to people who didn’t otherwise qualify for credit.
The consensus among bankers subject to the CRA is that it was an unimtigated success, and should in fact be strengthened and expanded Sheila Baird, the Dole protege whose FDIC is the primary overseer of CRA covered institutions, argued insistently that the chorus promoting your view was simply and flatly wrong
The subprime fiasco eruped after the FBI warned of an epidemic of mortgage fraud, and still the Bush administration continued to follow their combination of radical laissez-faire/crony capitalism tenets, elminating as much enforcement of regulations-such as the CRA- as they could. To reiterate, for 25 years the CRA failed to cause a credit crisis (and in fact led banks to make , in their view, exceptionally sound and profitable loans), and then largely sopped being enforced:I suppose you could call that “the CRA causing the subprime crisis”- if you were perverse and/or had had a WSJ Editorial pahe pod attached to your brain.

]]> http://blog.bbbeard.com/2008/10/08/contradictions/#comment-203 dave Sat, 04 Jul 2009 15:52:47 +0000 http://blog.bbbeard.com/2008/10/08/contradictions/#comment-203 It did so by creating incentives for banks and mortgage companies to lend money to people who didn’t meet traditional credit requirements. It did so by creating incentives for banks and mortgage companies to lend money to people who didn’t meet traditional credit requirements.

]]> http://blog.bbbeard.com/2008/10/08/contradictions/#comment-201 dave Fri, 03 Jul 2009 00:01:19 +0000 http://blog.bbbeard.com/2008/10/08/contradictions/#comment-201 Numerous economists have looked at the GOP claims that the CRA is a major contributor to the mortgage fiasco. Various Fed branches, as well as the central Fed, find no relationship- as in zero. Bankers themselves report liking CRA loans because of their low risk. The overwhelming majority of subprime mortgages were made by entities not covered by the CRA.. And, of course, it's odd that it worked basically as intended for 30 years, and then suddenly brought the world to its knees. All of the people promoting the idea that the CRA did are people with an anti-regulation/anti-affirmative action axe to grind. Literally no one without a deep-seated desire to blame everything on Carter (with help from Clinton) find any merit in the claim at all Numerous economists have looked at the GOP claims that the CRA is a major contributor to the mortgage fiasco. Various Fed branches, as well as the central Fed, find no relationship- as in zero. Bankers themselves report liking CRA loans because of their low risk. The overwhelming majority of subprime mortgages were made by entities not covered by the CRA.. And, of course, it’s odd that it worked basically as intended for 30 years, and then suddenly brought the world to its knees.
All of the people promoting the idea that the CRA did are people with an anti-regulation/anti-affirmative action axe to grind. Literally no one without a deep-seated desire to blame everything on Carter (with help from Clinton) find any merit in the claim at all

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