I know the narrative; the facts still do not support it.
Joel Send a noteboard - 26/12/2012 08:43:25 PM
One thing the author missed was teh reduction of Fannie & Freddie's capital reserve requirements which allowed a problem to turn into a catastrophe.
Not even those presented in the article trzaska linked, which clearly shows increased debt from the CRA rapidly peaked just above $1 trillion and remained flat for the next two years. Then Glass-Steagall was repealed debt almost immediately shot to $6 billion in just five years. Blaming that on the CRA instead of Gramm-Leach-Blilely is like saying the Battle of Lexington caused Pearl Harbor.
The bottom line is that the Federal Government FORCED banks to make unsound loan decisions, promising that Freddie & Fannie would be ther to back them up. They then REDUCED the capital reserve requirements of Fanny & Freddie (so that they could keep on promising to back unsound loans). The House oversight comittee (overseen by Barny "..[Fannie & Freddie] are fundamentally sound financially..." Frank) refused to allow a 3rd party to audit/evaluate F&F as requested by the GW Bush White House.
CRA was begun under Carter, Contined under Regan/Bush, masively expanded under Bill Clinton, and colapsed under GW Bush.
-End of Story-
The LITERAL bottom line, as in on the ledger, is that everything was fine for two solid years after the CRA, but all Hell broke loose mere months after Gramm-Leach-Bliley. Clinton shares plenty of blame for that; had he simply vetoed Gramm-Leach-Blilely the narrow Senate majority in favor of it could never have revived it. But you cannot blame Barney Frank for Phil Gramms idea (full points for trying though.)
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Last First in wotmania Chat
Slightly better than chocolate.
Love still can't be coerced.
Please Don't Eat the Newbies!
LoL. Be well, RAFOlk.
Community Reinvestment Act formally linked to the Sub-Prime/Mortgage Crisis - 
- 22/12/2012 09:01:56 PM
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- 22/12/2012 09:01:56 PM
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Did you see the part of the graph where higher debt leveled off in '98 and stayed there 2 years?
- 23/12/2012 04:13:01 AM
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Oh yeah, one of Bill Clinton's last acts as President
- 23/12/2012 02:47:23 PM
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... was signing a bill authored by three Republicans and passed with only ONE Dem Senators vote.
- 23/12/2012 11:37:10 PM
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Nice try - the repeal was all Clinton and Rubin.....buck stops with the leader.
- 24/12/2012 03:44:53 AM
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So the three Republicans who WROTE the bill are blameless; the guy who signed it is at fault.
- 24/12/2012 05:33:21 AM
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"Before you laugh too hard".....
- 24/12/2012 11:32:45 PM
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Also, did you just paraphrase Bill Clintons argument for Robamacare?! 
- 25/12/2012 03:36:37 AM
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- 25/12/2012 03:36:37 AM
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I've been trying to explain this to people for years.
- 26/12/2012 02:54:04 PM
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You and most of the GOP, but the facts do not support that narrative.
- 26/12/2012 05:54:28 PM
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Glass-Stegal was not repealed in a vacuum. There were many other regulatory changes
- 26/12/2012 07:40:45 PM
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I know the narrative; the facts still do not support it.
- 26/12/2012 08:43:25 PM
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Only when you ignore half of them.
- 27/12/2012 03:33:53 PM
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The entire "logic" ignores the most salient fact in the whole discussion.
- 28/12/2012 02:34:12 PM
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Your focus on that bill is the error.
- 28/12/2012 04:47:03 PM
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Any stats showing a disproportionate number of Fannie/Freddie defaults were by minorities?
- 28/12/2012 05:50:01 PM
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It has got NOTHING to do with skin color, the only color that should matter in banking is green.
- 28/12/2012 09:36:34 PM
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It should not, no, but the GOP dog whistles demonstrate it does.
- 28/12/2012 10:49:34 PM
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Get over YOUR perception that I give a damn about anyone's genetic background. I don't.
- 29/12/2012 04:18:22 PM
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Your incredible knowledge on this would fill a thimble. There were MULTIPLE issues>
- 28/12/2012 09:50:17 PM
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I love that part, too: "What Carter did in the '70s caused the subprime mortgage crisis in 2005."
- 28/12/2012 10:32:17 PM
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The policy began in the 70s, was MASIVELY expanded in the 90s, and blew up in the 00s.
- 29/12/2012 04:43:26 PM
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CRA was a disaster for the nation.....go ahead, you can admit it.
- 26/12/2012 08:32:33 PM
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The facts are in the graph in the article, and do not support that narrative.
- 26/12/2012 08:44:23 PM
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The facts support it perfectly. You vs. reality is the problem here. *NM*
- 26/12/2012 09:51:45 PM
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It is a pure causation line, get over it.
- 27/12/2012 03:35:19 PM
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Our Second Amendment discussions disqualify you as an authority on causality.
- 28/12/2012 02:58:04 PM
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I couldn't care less about party they both screwed up repeatedly.
- 28/12/2012 04:50:25 PM
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Then why do you insist on blaming Barney Frank exclusively?
- 28/12/2012 05:54:48 PM
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Because he is the person most responsible for forcing banks to lower lending standards. *NM*
- 28/12/2012 06:49:28 PM
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No he is not. It began in the 90s, well before he became chairman of the house commitee. *NM*
- 28/12/2012 09:57:02 PM
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Right, a guy who was only part of the House majority for two years did it all.
- 28/12/2012 11:03:08 PM
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I blame Barny for the under colateralization of F&F that he allowed and blocking the audit.
- 28/12/2012 09:54:27 PM
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Even were the charge valid (it is not,) if you believe it the crisis' main cause naught can help you
- 28/12/2012 11:00:14 PM
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The debate on comparative financial policies of the parties belongs elsewhere. lets keep on point.
- 29/12/2012 04:15:13 PM
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