Sunday, September 21, 2008

1977 Community Reinvestment Act - Carter, Clinton, Obama

7/11/09 Update:
Click here and read the report from the U.S. House of Representatives.
Or, click here and read the excerpts provided at Carpe Diem.

6/3/09 Update:
Click here to debunk Paul Krugman’s
false assertion that “Reagan Did It”.

2/16/09 Update:
Click here to completely debunk
EVERY argument from ALL the CRA deniers.

Click the image to enlarge it:
Click the image to enlarge it
Click here for the source of the image.


As the following videos and text demonstrate, overregulation, malfeasance, massive corruption and fraud on the part of Democrats were the primary causes of the current housing mess. At the root of it all is the Carter era 1977 Community Reinvestment Act.

Under Clinton, CRA related folly became a much bigger time bomb just waiting to explode. Click here to more fully understand how, in 1999, Clinton shifted to the tax payers all moral hazard associated with any subprime loan.

Obama is now at the white hot center of why this housing mess was not stopped. Click here for additional evidence implicating Obama.

The fallacy behind the original alleged intention of the CRA is explained in the text which follows the videos.

Additional regulation might have prevented this mess. Republicans attempted that. But, as the following videos and the text prove, Democrats blocked those efforts.

The best solution, as always, would have been to avoid the original overregulation (along with the inevitable fraud and corruption) in the first place.

Speaking of fraud and corruption, Fannie Mae and Freddie Mac, which have been described as “a kind of jobs program for out-of-work Democrats”, played a critical role in facilitating the Clinton “enhancements” to the CRA. They also provided lots of money to lots of Democrats (giving lots of Democrats lots of reasons to block reforms).


The following is a very brief
introduction to the pertinent facts
surrounding our housing mess:


The above video describes a $200 Billion bailout for Fannie & Freddie.
That bailout was expanded to $400 Billion.
Later, it was declared to be an UNLIMITED bailout!
Yet, the $170 Billion AIG bailout is all the media are interested in!

The following is an excellent
10 minute warp speed summary.
(Click here if the video is not visible.)



Click here to review sources for almost
every assertion made in the above video.

Note: The above link will open a new browser instance so you
can pause the video and go check that page for substantiations.

Even Bill Clinton knows who is to blame
(as he acknowledges in this video):



Let’s let Bill Clinton say that one more time:


New video as of 7/3/09.
Hat tip to Vulcan’s Hammer:


Why did you have to learn this from a citizen’s blog?
This journalist knows why.
If you find that outrageous, SPEAK UP!
But, for now, dig deeper.


The CRA also gave ACORN the legal authority to conduct what some would call extortion in the name of so-called “affordable housing”.

This dysfunctional “family” consisting of the CRA, ACORN, Fannie, Freddie and key Democrats directly caused the current housing mess. But, this “family” is not merely dysfunctional. Reuters reports that Fannie and Freddie are being investigated by the FBI for fraud. CNN and others report that ACORN is being investigated by the FBI for voter fraud.

McCain and Bush both saw this housing mess coming and tried to stop it. But, lacking 60 Senators, the Republicans were unable to overpower the obstructionist efforts of the Democrats who were taking (and making) piles of cash from Fannie and Freddie. Without 60 votes in the Senate, the Republicans could not even get the Senate to vote on the desperately needed reforms.

Click here to read what the CRA purports to accomplish.

The CRA was bolstered by “a widely publicized 1990 Federal Reserve Bank of Boston finding that blacks and Hispanics suffered higher mortgage-denial rates than whites, even at similar income levels”.

It was preposterous on its face to presume that lenders were more interested in pursuing a racial agenda than in making a buck on a mutually beneficial loan. Never mind common sense, that Boston Fed study has since been repeatedly proven to have been inaccurate on the academic level as well.

As one of many examples, this 1996 study concludes:

“most, if not all, statistical evidence of racial redlining based on aggregate loan data is at best inconclusive, and more likely, misleading.”
What the CRA really does is requires mortgage lenders, through force of law, to meet government mandated quotas for handing out bad loans (aka subprime loans). If lenders fail to meet those quotas, there are penalties. In an era of mergers and acquisitions, the “penalties” often meant going out of business (see page 11 of this document). But, meeting these government mandated quotas ALSO often meant going out of business (both during the S&L Crisis of the late 1980’s and 1990’s as well as the current mess).


Click here to review all the posts which substantiate
and expand upon all of my observations above.

Click here for a timeline of government intrusion.

10 comments:

WDA said...

I DON’T CARE IF YOU ARE A REPUBLICAN OR A DEMOCRAT OR IF YOU ARE PLANNING TO VOTE FOR MCAIN OR FOR OBAMA BUT ENCLOSED IS THE BEST PRESENTATION, THAT MOST OF US CAN UNDERSTAND, SHOWING WHY THE U.S. GOVERNMENT, MORE THAN ANYONE, IS ABSOLUTELY RESPONSIBLE FOR THE CURRENT ECONOMIC CRISIS AND HOW THOSE IN THE U.S. GOVERNMENT ARE HELPING THEMSELVES AND NOT THE U.S CITIZENS.

IF YOU ARE PLANNING TO VOTE, YOU OWE IT TO YOURSELF TO WATCH AND RE-WATCH THE VIDEO AND THEN DO AS THE VIDEO SUGGESTS, GOOGLE AND RESEARCH THE INFORMATION PRESENTED. CHALLENGE EVERY FACT IN THE VIDEO. IF YOU TRULY WANT TO KNOW THE TRUTH YOU HAVE TO DIG AND IF YOU DIG YOU WILL SEE THAT THIS VIDEO IS BASED ON FACT, NOT RHETORIC. IF YOU DISPMISS THE CONTENT OF THIS VIDEO COMPLETELY WITHOUT RESEARCHING THE FACTS BEHIND IT THEN YOU ARE NOT THE CARING, COMPASIONATE PERSON YOU THINK YOU ARE.

SBVOR said...

WDA,

Thanks for the comment.

Just FYI…
I have done almost all of the Googling (for the first video in this post) and the results, along with the associated timestamp in the video, can be found here.

Using that previous link, one can easily pause the video, note the timestamp, and readily locate and read the substantiating information.

I strongly encourage all who plan to vote to do just that.

Mountain Sage said...

You commented on my blog that you were including the embed code but there wasn't any. I did find another you tube version.

MountainSage

Raven said...

Thanks for your comment at Raven's Nest. You clearly have as strong a right wing view of the world as I do a liberal one. The fact that you think you are right, doesn't mean that you are, however. I'm not going to argue with you about it because I won't convince you and you won't convince me. We can refute each other's data til the cows come home and we will not convince each other. One thing I will point out is that my post never said that McCain was guilty of Keating. What I said is that if his campaign wants to say that knowing someone who committed a crime makes you guilty of that crime, then that logic cuts both ways. He was very close to Keating. Obama is not friends with Ayers. They are acquaintances.

SBVOR said...

Raven,

Moral equivalence, as usual, does not apply.

It is not a question of a single acquaintance committing a single crime. In Obama’s case, it is an entire NETWORK of CLOSE associates, over an extended period of DECADES, who ALL share a dangerously radical ideology and ALL dedicate their entire lives to that radical ideology.

rewinn said...

Rather than point out that the CRA compelled no-one to make bad loans (it merely attacked the practice of refusing to make good loans on the basis of redlining), and that in any event whatever poison the CRA may have injected into the system seems to have taken DECADES to be effective ... whereas the repeal of Glass-Steagel was obviously more virulent (but written by McCain's ally Gramm) ....

... it will be more useful to advise those actually interested in learning to This American Life's excellent "The Giant Pool of Money" - which could better be entitled "The Anatomy of a Lending Crisis".

It tells how a loosely regulated financial industry managed to bring the worlds markets to their knees using the voices of all involved: home buyers, storefront lenders, and Wall Street titans now struggling to survive.

Transcript (PDF)

Hear the Audio

digg story

SBVOR said...

rewinn,

1) Your first sentence reveals that you did not even skim the surface of the evidence I presented. Clearly, you merely read the headline and then regurgitated the mindless rhetoric of The Left. No surprise there.

2) The only reason I published your comment was because you at least offered some measure of substantiating evidence (even if superficial, anecdotal substantiating evidence).

3) I listened to the Ira Glass episode live when it was first broadcast on NPR. That’s the difference between Conservatives and so-called “Liberals”. We Conservatives take in information from ALL sources and then decide for ourselves what is wheat and what is chaff.

There is some measure of truth in the Ira Glass presentation. Like any speculative bubble, there were lots of people drinking the Kool-Aid. Remember the dot.com bubble? Remember shoe shine gentlemen offering stock advice? Last year I was listening to stories of unskilled laborers offering advice on flipping condos.

So, yes, everybody was drunk on the Kool-Aid. However, the Kool-Aid was prepared by the CRA, spiked by Clinton and distributed by Fannie and Freddie with utterly corrupt Dems aiding, abetting and profiting at every step. Ira’s superficial, anecdotal examination never probed that level. But, that did not surprise me.

Wake up and smell the coffee! There is plenty of blame to go around. However, CLEARLY the ROOT of the blame lands on the shoulders of bad housing policies created and pimped by corrupt Democrats who promoted housing as yet another fantasy based Entitlement.

Winghunter said...

Your video clip of Clinton confessing needs updating. Here's a link for it;

Subprime Disaster: Clinton Brags He's Responsible http://bit.ly/po3wDZ

SBVOR said...

Winghunter,

Thank you for the heads up on the video. The now deleted video featured Clinton admitting exactly what he admits in the video just below the now deleted video (as opposed to bragging about how well the CRA "worked").

I extensively documented Clinton bragging about putting the CRA on steroids in this post:

http://sbvor.blogspot.com/2009/02/bill-clinton-and-community-reinvestment.html

Thanks again. I will see if I can find another instance of the missing video. Your assistance with this is sincerely appreciated!

SBVOR said...

Winghunter,

Thanks again for the heads up on the deleted video. I found and inserted a suitable replacement for the original video clip.

Any future assistance with missing links, deleted videos or anything else will be greatly appreciated. THANKS!

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