yes Bush and Democrats like Barney Frank were all for liberal interference. Conservatives are opposed to such interference. Do you understand now? Can you have your mother explain it to you?
SURE:
4. Conservatives sang a different tune before the crash: Conservative think tanks spent the 2000s saying the exact opposite of what they are saying now
My personal favorite is Catos Should CRA Stand for Community Redundancy Act? from 2000 (heres a write-up by James Kwak), which argues a position amplified in its 2003 Handbook for Congress financial deregulation chapter: by increasing the costs to banks of doing business in distressed communities, the
CRA makes banks likely to deny credit to marginal borrowers that would qualify for credit if costs were not so high. Replace marginal with Bloombergs on the cusp and you get the same idea.
Bill Black went through what AEI said about the GSEs during the 2000s and it is the same thing that they were blocking subprime loans from being made. In the words of Peter Wallison
(AEI CON) in 2004: In recent years, study after study has shown that Fannie Mae and Freddie Mac are failing to do even as much as banks and S&Ls in providing financing for affordable housing, including minority and low income housing.
Hey Mayor Bloomberg! No, the GSEs Did Not Cause the Financial Meltdown (but thats just according to the data) | The Big Picture
Wallison Reinvents History
Wallison's Ode to Low Interest Rates
Testimony before the Subcommittee on Securities of the Senate Committee on Banking, Housing and Urban Affairs - Economics - AEI
Testimony before the Subcommittee on Securities of the Senate Committee on Banking, Housing and Urban Affairs
By Peter J. Wallison | Senate Committee on Banking, Housing, and Urban Affairs (July 19, 2000)
If capital costs are low, more capital will be available for companies that need it, capital will be allocated more efficiently, we will have faster and broader-based economic growth, and the welfare of all Americans will be enhanced.
(Parenthetically,
Wallison's July 19, 2000 Senate testimony disputed the claim that there was a high tech bubble - even as the bubble was collapsing.)
Wallison's Ode to Subprime Lending
Wallison and his AEI colleague Charles Calomiris co-chaired AEI's project on financial market deregulation . They were also members of the Shadow Financial Regulatory Committee (a self-selected group of deregulatory scholars and practitioners associated with AEI).
Statement of the Shadow Financial Regulatory Committee on Predatory Lending
December 3, 2001. Statement No. 173
The Federal Reserve is in the process of drafting detailed regulations dealing with alleged problems of so-called
"predatory lending" in the subprime mortgage market, and the Congress is considering actions to curb various alleged abuses in this type of lending.
Because much of what is classified as predatory lending involves loans to low-income, minority, and higher-risk borrowers, a central principle that should guide legislation and regulation in this area is the desirability of preserving access to subprime mortgage credit for such borrowers,
who are most at risk of losing access to this market in the wake of misguided and punitive regulations. The
democratization of consumer finance that has occurred over the past decade has created new opportunities for low-income consumers. This is now threatened by chilling effects that inappropriate regulations and laws might have on the supply of subprime credit to these consumers.
Wallison Criticized Fannie & Freddie for Making too Few Loans to the Less Wealthy
Wallison's critique of Fannie and Freddie emphasized their failure to make more subprime loans and loans to minorities.
H.R. 3703 and its Effects on Government Sponsored Enterprises - Economics - AEI
MUCH, MUCH MORE HERE
Wallison Reinvents History
