Housing debacle could be replayed.

[AztecWilliam]

Congress wants more of the same. The same being federal policies that largely set the scene for the housing collapse that started the economic crisis of the past year and a half.

www.washingtonexaminer.com/politics/Democrats-on-path-to-repeat-housing-disaster-8275069-60060902.html

AzWm

[AlwaysAnAztec]

Of course Republicans will denigrate anything that attempts to help anyone besides business and the rich. Even their own economist admits that the CRA was NOT the basis of meltdown.

After the meltdown, some conservatives blamed the CRA for almost solely causing the crisis by requiring banks to make risky loans to unqualified borrowers. It was an unfair charge. "CRA had at best an incremental role in the U.S. housing debacle," says J.D. Foster, an economist at the Heritage Foundation. But CRA did help create the conditions in which disaster could occur.

[AztecWilliam]

Sept 23, 2009 7:10:17 GMT -8 AlwaysAnAztec said:

Of course Republicans will denigrate anything that attempts to help anyone besides business and the rich. Even their own economist admits that the CRA was NOT the basis of meltdown.

After the meltdown, some conservatives blamed the CRA for almost solely causing the crisis by requiring banks to make risky loans to unqualified borrowers. It was an unfair charge. "CRA had at best an incremental role in the U.S. housing debacle," says J.D. Foster, an economist at the Heritage Foundation. But CRA did help create the conditions in which disaster could occur.

You have conveniently ignored York's conclusion. . .

That's an overstatement of CRA's role in the housing mess, but it's right about the Democratic plan. Denying that CRA, Fannie and other institutions played any role in setting the stage for disaster, they're proposing more of what helped get us into trouble in the first place. It's no way to fix the problem.

AzWm

[aztecwin]

Sept 23, 2009 7:10:17 GMT -8 AlwaysAnAztec said:

Of course Republicans will denigrate anything that attempts to help anyone besides business and the rich. Even their own economist admits that the CRA was NOT the basis of meltdown.

After the meltdown, some conservatives blamed the CRA for almost solely causing the crisis by requiring banks to make risky loans to unqualified borrowers. It was an unfair charge. "CRA had at best an incremental role in the U.S. housing debacle," says J.D. Foster, an economist at the Heritage Foundation. But CRA did help create the conditions in which disaster could occur.

I find it funny when you ignore an important part of your own quote.

[AlwaysAnAztec]

Sept 23, 2009 13:01:27 GMT -8 aztecwin said:

Sept 23, 2009 7:10:17 GMT -8 AlwaysAnAztec said:

Of course Republicans will denigrate anything that attempts to help anyone besides business and the rich. Even their own economist admits that the CRA was NOT the basis of meltdown.

I find it funny when you ignore an important part of your own quote.

No I didn't.

Was the CRA a 'contributor'? Yes it was, just about every financial entity having to do with the financial meltdown was. However it WAS NOT a primary cause as the wing-nuts charge.

[aztecwin]

Sept 23, 2009 15:14:09 GMT -8 AlwaysAnAztec said:

Sept 23, 2009 13:01:27 GMT -8 aztecwin said:

I find it funny when you ignore an important part of your own quote.

No I didn't.

Was the CRA a 'contributor'? Yes it was, just about every financial entity having to do with the financial meltdown was. However it WAS NOT a primary cause as the wing-nuts charge.

Just what was the primary cause? Was it the repeated warning by GOP members of Congress that trouble was brewing and major problems were pointed out or was it Barney Frank and his henchmen insisting that Fannie and Freddie were solvent up to 30 days before the collapse? It is hard to say just what the biggest problem was, but CRA was right up there and to deny that is "head in sand".