New study confirms democrats crashed the economy DUH...

[g5000]

Historians know who crashed the economy.

AGAIN read the most RECENT study..
New study concludes that the Community Reinvestment Act ‘clearly’ did lead to risky lending
James Pethokoukis | December 12, 2012, 9:50 am
Our empirical strategy compares lending behavior of banks undergoing CRA exams within a given census tract in a given month to the behavior of banks operating in the same census tract-month that do not face these exams. We find that adherence to the act led to riskier lending by banks: in the six quarters surrounding the CRA exams lending is elevated on average by about 5 percent every quarter and loans in these quarters default by about 15 percent more often. These patterns are accentuated in CRA-eligible census tracts and are concentrated among large banks. The effects are strongest during the time period when the market for private securitization was booming. …
New study concludes that the Community Reinvestment Act ‘clearly’ did lead to risky lending | AEIdeas

In case the above GOES OVER your head...
When the lenders did "risky" subprime lending DUE to the CRA... DEFAULTS occurred 15% more often!
Defaults meant lower credit ratings for the lenders! Lower credit ratings to the lenders meant they had to take greater and greater subprime lending risks to
gain more and more revenue to meet the higher costs of borrowing since their credit ratings got worse!

Do you understand the totally vicious cycle that occurred then? CRA forced making more subprime loans that paid higher interests so lenders could borrow to make higher risk loans and the whole process snowballed till it crashed!

All because CRA forced lenders to make more subprime loans and the above study shows!

The premise of this topic is that the CRA caused the crash. And they cite a study, claiming the study confirms this claim.

In fact, the study does not state in any way the crash was caused by CRA, not does it make any conclusions that the CRA was even a major contributing factor.

The people pouring your piss did not link to the study because they thought you might read it and discover this simple fact.

 

[bayoubill]

New study confirms democrats crashed the economy DUH...​

By: ROBERT MOON
12/21/2012


A new study from the widely respected National Bureau of Economic Research released this week has confirmed beyond question that the left's race-baiting attacks on the housing market (the Community Reinvestment Act

-President Bush went to Congress repeatedly for years warning them that Fannie Mae and Freddie Mac were going to destroy the economy (17 times in 2008 alone). Democrats continuously ignored him, shut down his proposals along party lines and continued raiding the institutions for campaign contributions on their way down.

-No one was making bad loans to unqualified people until Democrats came along and threatened to drag banks into court and have them fined and branded as racists if they didn't go along with the left's Affirmative Action lending policies...all while federally insuring their losses. Even the New York Times warned in the late 1990s that Democrats continuing to force banks into lowering their standards would lead to this exact catastrophe.​

(Excerpt)

Read more:
New study confirms economy was destroyed by Democrat policies - National Conservative | Examiner.com

meh... I just wrote something lengthy, pithy and to the point... but then erased it... what's the use...?!

 

[Wacky Quacky]

New study confirms democrats crashed the economy DUH...

That's just as fucking stupid as the left wing blaming republicans for crashing the whole world economy.

Blind partisanship really does rule US politics, doesn't it. No room for logic or facts on either side.

 

[g5000]

no real study huh?


Just fucking right wing lies

is this a lie bitch ???

[ame=http://www.youtube.com/watch?v=GXfAPyHpPZk]Democrats Covering up the Fannie Mae, Freddie Mac - YouTube[/ame]

Fannie Mae and Freddie Mac bundle more than CRA loans. A lot more.

And it was the very bookkeeping corruption at the GSEs which opened the door for Wall Street to rush into the gap and allow their derivatives market to become the dominant mortgage-generating industry. By 2006, the GSEs were less than half of the mortgage business for the first time since almost all the way back to their founding.

It appears many of the idiots trying to scapegoat the CRA are completely ignorant of these facts.

Wall Street was the overriding driving force behind the mortgage boom. Who do you think INVENTED the 3-year ARM?

Were the GSE's portfolios too large? Hell yes! Did the Bush Administration attempt to get the GSEs to shrink their portfolios? Hell yes! Did Barney Frank and Chris Dodd work to block these attempts? Hell yes! With the full cooperation of enough Republicans to succeed in blocking the attempts to shrink the GSE portfolios. I think most of you would be shocked to your cores if you knew how many politicians have ties to the GSEs, with absolutely no difference between the number of Republicans and Democrats who have drawn paychecks from them.

I have documented these facts many, many times on other forums since the crash.

The GSEs were most certainly a major contributing factor to the crash.

But the CRA was not.

However, if I were to hold up the GSEs next to Wall Street, Wall Street would loom far, far, far larger in culpability for the crash.

And Congress was complicit in Wall Street's evildoing, too. But that was a completely bi-partisan effort, not a Democratic one. Gramm-Leach-Bliley. All three were GOP.

Bush reduced the size of only two government agencies during his Administration, and expanded the size of all others, and even created a whole new Cabinet level department (DHS).

The two agencies he shrank were the EPA and the SEC.

While the thieves on Wall Street were robbing your 401k and your insurance company and your public employee pension fund and your city treasurer and your college endowment fund blind, they received a police escort.

That was not the CRA or the GSEs doing that. That was Goldman Sachs, JP Morgan, Bear Stearns, Morgan Stanley, Merrill Lynch, and Lehman Brothers doing that. And other broker dealers all around the planet. And they all got bailouts, not just the GSEs.

 

[Mr. Shaman]

no real study huh?


Just fucking right wing lies

is this a lie bitch ???

[ame=http://www.youtube.com/watch?v=GXfAPyHpPZk]Democrats Covering up the Fannie Mae, Freddie Mac - YouTube[/ame]

Fannie Mae and Freddie Mac bundle more than CRA loans. A lot more.

And it was the very corruption at the GSEs which opened the door for Wall Street's derivatives market to become the dominant mortgage industry. By 2006, the GSEs were less than half of the mortgage business for the first time in history.

It appears many of the idiots trying to scapegoat the CRA are completely ignorant of these facts.

Wall Street was the overriding driving force behind the mortgage boom.

[ame=http://www.youtube.com/watch?v=5xvXw1HHCq8]Ratings Agencies Among Top 'Devils' of Meltdown, Authors Contend - YouTube[/ame]
*
[ame=http://www.youtube.com/watch?v=h0_Lu4sGWQY]Charlie Rose - Joe Nocera & Bethany McLean - YouTube[/ame]
*
[ame=http://www.youtube.com/watch?v=3C8tC_0dsDI]Bethany McLean, Author, "All The Devils Are Here" - YouTube[/ame]​

 

[g5000]

A global derivatives bubble of this magnitude required a cast of millions around the globe from all political, economic, and social orientations.

Attempts to pin it all on one group is a stupid, pointless, idiotic exercise that betrays a profound ignorance of all the moving parts, and to attempt to pin it on something as ridiculous as the CRA reeks to high heaven of bigotry.

 

[Wehrwolfen]

Isn't the Examiner the same paper that misread the report on Chrysler jobs in China?

Democrats and the media insist the Community Reinvestment Act, the anti-redlining law beefed up by President Clinton, had nothing to do with the subprime mortgage crisis and recession.


But a new study by the respected National Bureau of Economic Research finds, "Yes, it did. We find that adherence to that act led to riskier lending by banks."


Added NBER: "There is a clear pattern of increased defaults for loans made by these banks in quarters around the (CRA) exam. Moreover, the effects are larger for loans made within CRA tracts," or predominantly low-income and minority areas.

Read More At IBD: New Study Blames Community Reinvestment Act For Mortgage Defaults - Investors.com
​

Obama’s Ties to ACORN Show Complicity in Financial Crisis Caused by Bad Mortgages​

by hotoffthepress2
September 18, 2009


By Bob Dienstbach
Guest Blogger

While Americans were busily distracted by undercover videos exposing outrageous behavior on the part of ACORN this week, Congress appropriated ALL lending authority for higher education. ACORN (read Obama) forced banks to make high risk loans to pimps and prostitutes to buy homes (foreclosed now…causing massive banking bailouts at taxpayer expense), and now President Barack Obama wants to put pimps and prostitutes in college.

The mortgage crisis that sent a shock wave through Wall Street and panicked world financial markets was precipitated by the Community Reinvestment Act signed into law in 1977 by President Jimmy Carter. The CRA was Carter’s answer to a grassroots activist movement started in Chicago (Jesse Jackson’s Rainbow Coalition), and forced banks to make loans to low income, high risk customers. PhD economist and former Texas Senator Phil Gramm called it “a vast extortion scheme against the nation’s banks.” It is no coincidence that Carter played the race card the same week in September 2009 that ACORN was under attack.

In 1991, Acorn took over the House Banking Committee room for two days to protest efforts to scale back the CRA [Note: Obama, by the way, represented ACORN in the Buycks-Roberson v. Citibank Fed. Sav. Bank, 1994 suit against redlining]. When banks don’t lend to pimps and prostitutes, Obama calls it red-lining. Most significant of all, ACORN was the driving force behind a 1995 regulatory revision pushed through by the Clinton Administration that greatly expanded the and laid the groundwork for the CRA/Fannie Mae/Freddie Mac-borne financial crisis we now confront [Note: Again, Obama was the attorney representing ACORN in this effort]. With this new authority, ACORN used its ACORN Housing subsidiary to promote subprime loans more aggressively and, as we now know, even to pimps and prostitutes


**snip**
Obama

 

[Mac1958]

New study confirms democrats crashed the economy DUH...

That's just as fucking stupid as the left wing blaming republicans for crashing the whole world economy.

Blind partisanship really does rule US politics, doesn't it. No room for logic or facts on either side.

.

 

[francoHFW]

The problem was Bush regulators looking the other way as junk bonds were rated A+ and sold around the world. F+F's share of the market went from 75% to 25% of the market as banks and Countrywide etc went wild. Yippee for deregulation!!

OP-Big Lie Bullshytte.Nothing new from the PPM or this poster.