New study: CRA promoted risky lending.

Discussion in 'Economy' started by Quantum Windbag, Dec 22, 2012.

  1. Quantum Windbag
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    Quantum Windbag Gold Member

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    Can I say d'uh?

    I am sure the usual suspects are going to blame the greedy bankers, even if none of them can explain how bankers get rich by lending money to people who can't pay it back.

    And, of course, Fannie and Freddie had nothing to do with it.

    New Study Blames Community Reinvestment Act For Mortgage Defaults - Investors.com



    New Study Blames Community Reinvestment Act For Mortgage Defaults - Investors.com
     
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  2. bigrebnc1775
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    bigrebnc1775 Diamond Member

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    OH boy this thread should attract a magnitude of liberal wrath. :badgrin:

    Nice.
     
  3. Care4all
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    Care4all Warrior Princess Supporting Member

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    I dunno? Can you say duh? :)

    CRA and the Housing Bubble - Credit Slips
     
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    Last edited: Dec 22, 2012
  4. Quantum Windbag
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    Quantum Windbag Gold Member

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    Your study argues that, since there was a commercial boom, the CRA didn't cause the residential boom. Mine points out that banks actually increased risky lending because of the CRA. Unless you can show a parallel increase in risky lending in the commercial market, which your article admits does not exist, mine trumps the assumptions in yours.

    In other words, we are actually talking about two different things.
     
  5. EdwardBaiamonte
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    EdwardBaiamonte Gold Member

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    I seems much of the government was organized to get people into homes the Republican free market said they could not afford. At the heart of it was the Fed whose open policy was to stimulate the housing market with lots of easy money in the wake of 9/11 and a long term sluggish economy! CRA was tiny part of the entire liberal effort.
     
  6. Toro
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    Toro Diamond Member

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    The Commercial Real Estate Bubble by Adam Levitin, Susan Wachter :: SSRN
     
  7. Sallow
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    Sallow The Big Bad Wolf. Supporting Member

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    :lol:

    You really have absolutely no idea what you are talking about.
     
  8. EdwardBaiamonte
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    EdwardBaiamonte Gold Member

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    if true present your evidence or rationale or admit as a liberal you lack the IQ to do so
     
  9. Quantum Windbag
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    Quantum Windbag Gold Member

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    The study I posted shows that the CRA contributed to, but was not the primary cause of, the residential real estate bubble. The other study is about the commercial real estate bubble, and points out that the CRA had no affect on it, something I am not arguing. I am simply pointing out that they are not interrelated if we are discussing the CRA, which I am.
     
  10. boedicca
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    boedicca Uppity Water Nymph Supporting Member

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    Duh^Infinity
     

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