Requiring lenders to prove that they are serving their entire community is not the same as forcing them to provide loans to every idiot who asks for one, no matter how bad their credit and work history etc.
I have never argued that there should not have been a CRA or something like it. But I would also argue that unintended consequences can be just important as the intended ones.:caution:
Apparently no job and a bad credit history has become the equivalent of "up is down,' "slavery is freedom," etc. Did Orwell look into the future in 1949 when he wrote "1984?" We would have been laughed out of the bank not too many years ago had we tried this!Now I am reading that if the minimum wage goes up by a grand amount of $1.75 an hour, millions of people will suddenly qualify for a home loan? Okaaay.... :lamo
I agree and I acknowledge that the regulating legislation and practices
during the 19990s-the present may be a small factor in the crisis and should be re-examined. However, there is no evidence that the original CRA (enacted in 1977) caused the crisis or required loans to unqualified borrowers. Ending redlining and discrimination was the right thing to do and was beneficial to many people who previously faced unjustifiable discrimination.
I agree and I acknowledge that the regulating legislation and practices during the 19990s-the present may be a small factor in the crisis and should be re-examined. However, there is no evidence that the original CRA (enacted in 1977) caused the crisis or required loans to unqualified borrowers. Ending redlining and discrimination was the right thing to do and was beneficial to many people who previously faced unjustifiable discrimination.
I hate to ruin our bit of consensus, but.. We can't forget that the emergence of
derivatives allowed lenders to package questionable loans and sell them off to buyers who were not fully aware of the risk. That removed lender's traditional reluctance to give out risky loans. Most economists (and I) feel that the derivatives were the most significant contributor to the mortgage crisis.
Fenton: Did Bush II ever do anything wrong re. the economy?
First sign a liberal has run out of logical points: BOOOOOOOSSSSHHHHH.
You want to start a topic aout the economy under Bush you go right ahead. Its related to this topic but to toss it in cold like you did reeks of trying to change the subject of the thread.
Survey says: Off topic!
Fenton has very consistently put nearly all blame for
the mortgage crisis on Democrats. I have been defending the CRA, and given blame for the crisis to the emergence of derivatives, but have not defended nor attacked the actions of any particular administration or party. I have acknowledged that some of regulations enacted under Clinton, such as quotas, may have caused some problems.
If you want to pigeon hole my posistions, know that I am generally in favor of strong regulation of the financial sectors, but I favor routine evaluation of all regulations, deregulations and other governmental acts to determine whether they acheived the intended goals effectively without excessive collateral damage.
Fenton has very consistently put nearly all blame for the mortgage crisis on Democrats. I have been defending the CRA, and given blame for the crisis to the emergence of derivatives, but have not defended nor attacked the actions of any particular administration or party. I have acknowledged that some of regulations enacted under Clinton, such as quotas, may have caused some problems.
If you want to pigeon hole my posistions, know that I am generally in favor of strong regulation of the financial sectors, but I favor routine evaluation of all regulations, deregulations and other governmental acts to determine whether they acheived the intended goals effectively without excessive collateral damage.
Fenton: Did Bush II ever do anything wrong re. the economy?
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