- May 27, 2012
You don't know what you are talking about. CRA didn't create sub-prime lending, it existed prior to Clinton's change in CRA. Also, CRA didn't create Long Beach, Decision 1, New Century, or the hundreds of other truly sub-prime lenders who were not deposit bearing institutions and therefore had NOTHING to do with CRA. Your entire first paragraph is complete and utter bullsh!t. It actually isn't worth discussing further because it shows such a lack of understanding that there is no relevant point from which to begin explaining where you are wrong because it's all wrong and the theoretical basis for it is from another planet than the actual basis.BillytheKid said:As said...the Sub-prime lending (Community Reinvestment Act, signed into law under President Bill Clinton in 1993) which basically removed lending restrictions on housing mortgages and other lending to those of lower income to allow for the needs of housing of the poor, have lead to the current economic debacle.
This act removed much the same restrictions as you impicity allude to having only existed elsewhere. I do disagree with sole blame to Capitalism. I think the deregulation was well intentioned philosophy of the Clinton left, however misguided and possibly aided by the corrupted who sought it's chance at short-term gain. My long post was in response to the statement that government action had no effect on the current economy. The rise of the British Empire was quite the enterprise, but we all got into the game. And the game still goes on.
Taken from the movie "The King's Speech"; Berty to his father: "We're not a family. We are a corporation."
This is nothing knew as the creation of the Knights Templar was financed in way that has been credited to the basis of the modern banking system.
However it can be noted that late in the Roman Empire, Rome to took to minting coin at a high rate, made of less precious metal. They too, faced the debacle of devaluation of currency. Many a times it has happened. I have no time to expand or accredit today.
A thesis statement; History leads to the understanding of economics.
Read it. Read many, but with a grain of salt.
John Steinbeck's "Grapes of Wrath" Chapter 5. Solidly grounded historical fiction. The chapter stands on it's own as one of his removed and broad commentaries during the course of the novel. Steinbeck never misses the chance to point out human nature's influence over all human designs. Very powerful insight in my opinion, which it has influence greatly, and so, I never miss the chance to point out that political systems are only as good as the people who run them.
Again, just because Hannity says CRA caused the problem, and there is a Wikipedia reference to it doesn't make it true. A guy in one of my classes used Wikipedia as a reference recently...the task to which he was taken by the professor was both public and humiliating. Do everyone who does understand what happens a favor and quit posting about it. All you are doing is showing over and over that you don't actually understand what happened.