Quoting Investor’s Business Daily (emphasis mine):“The [Community Reinvestment Act] regulation grew to monstrous proportions during the Clinton administration, obsessed as it was with multiculturalism. Amendments to the CRA in the mid-1990s dramatically raised the amount of home loans to otherwise unqualified low-income borrowers.
Click the image & read the rest:
The revisions also allowed for the first time the securitization of CRA-regulated loans containing subprime mortgages. The changes came as radical ‘housing rights’ groups led by ACORN lobbied for such loans. ACORN at the time was represented by a young public-interest lawyer in Chicago by the name of Barack Obama.”
So… Is THAT what a “community organizer” does?
Rob the tax payers on behalf of Socialist corruption?
Click here to read the primary post on this topic
(and all the rest).
3 comments:
You can scream, blog, hue and cry about how it was the Democrats that caused the housing mess all day long... and you still would be wrong, and beyond that, looking in all the wrong places in space and time.
It is William Philip "Phil" Gramm (R) who is the cause of all this mess!
Gramm was one of five co-sponsors of the Commodity Futures Modernization Act of 2000. One provision of the bill was referred to as the "Enron loophole" because the House Agriculture Committee drafted it and it was later applied to Enron. [RECENT: Energy/Market Failure]
Gramm spearheaded efforts to pass banking reform laws, including the landmark Gramm-Leach-Bliley Act in 1999, which modernized Depression-era laws separating banking, insurance and brokerage activities. [CURRENT: Finance/Market Failure]
Between 1995 and 2000, Gramm was the chairman of the U.S. Senate Committee on Banking, Housing, and Urban Affairs. [CURRENT: Governmental Regulation and Oversight Failure]
(Source: http://en.wikipedia.org/wiki/Phil_Gramm)
You cannot be the CHAIRMAN of a Congressional Committee unless you're the MAJORITY PARTY in Congress.
You can't lay the blame at the feet of the Dems when it was the Republican's "Contract for (on) America" that has us bleeding on the concrete today.
Who was John McCain's Economic Advisor from the beginning of his campaign until just a few short months ago? You got it!
Phil Gramm!
Who will be most influential in the economic policy of a John McCain Presidency?
You got it!
Phil Gramm!
Anonymous,
Are you serious?
Is THAT your explanation?
It would be funny if it were not so sad (and typical).
Anonymous,
Here is a primer for you in economics:
“What we have here is a case of what economist Paul H. Rubin calls ‘folk economics’ — value-laden myths that do not reflect financial realities.
It is not at all clear what, if anything, Gramm’s legislation has to do with the current difficulties in the market, other than the fact that Democrats instinctively recoil when they hear the word ‘deregulation.’
Gramm-Leach-Bliley did not create securitization and collateralized debt obligations. It did not change the rules for banks’ leverage ratios. If anything, Gramm-Leach-Bliley mitigated some risks by allowing financial companies to diversify their businesses, and it is the most diversified firms that are best weathering the storm. Which makes sense: An investment portfolio is more stable the more diversified it is. The firms that have spectacularly imploded have mostly been non-diversified commercial banks, like Countrywide, or pure investment banks, like Lehman Brothers. But the broadly diversified megabanks are enduring — taking a hit from housing, sure, but they have other lines of business to sustain them. And we should not forget: Without the Gramm-Leach-Bliley reforms, Bank of America would have been legally forbidden to take over Merrill Lynch — very possibly leaving taxpayers on the hook for that one, too. Morgan would not have been able to buy Bear Stearns without Gramm’s reforms.”
Click here to read the rest.
Post a Comment