A 6% foreclosure rate did not create the financial crisis. Casino-like unregulated investment instruments did. A philosophy of gilding the turd to get the commission did. The complete abandonment of fiduciary responsibility and the failure to grasp the concept of what unlimited liability means did.
And BTW, the communists seem to be doing a right good job of buying our country out from underneath us, no? I wouldn't diss their econ cred so quickly.
Maybe the "corporation" was created to legally mask the concept of unlimited liability? While there's no doubt in my mind big government, Wall Street and the richest 5% of Americans were responsible for the financial crisis, there are some recent government actions that make better targets for blame than the CRA.
"Better targets for blame in government circles might be the 2000 law which ensured that credit default swaps would remain unregulated, the SECs puzzling 2004 decision to allow the largest brokerage firms to borrow upwards of 30 times their capital and that same agencys failure to oversee those brokerage firms in subsequent years as many gorged on subprime debt.
"(Barry Ritholtz had an excellent and more comprehensive survey of how Washington contributed to the crisis in this weeks Barrons.)"
Community Reinvestment Act had nothing to do with subprime crisis - BusinessWeek
You need to learn GOVERNMENT'S role in that crisis:
Fannie Mae, Freddie Mac And The Credit Crisis Of 2008
Fannie Mae, Freddie Mac And The Credit Crisis Of 2008
[ame=http://www.youtube.com/watch?v=_MGT_cSi7Rs]YouTube - Shocking Video Unearthed Democrats in their own words Covering up the Fannie Mae, Freddie Mac Scam that caused our Economic Crisis[/ame]
[ame=http://www.youtube.com/watch?v=LPSDnGMzIdo]YouTube - Democrats were WARNED of Financial crisis and did NOTHING[/ame]
"Private Profits With Public Risk
"With a funding advantage over their Wall Street rivals, Fannie Mae and Freddie Mac made large profits for more than two decades. Over this time period, there was frequent debate and analysis among financial and housing market professionals, government officials, members of Congress and the executive branch about whether Fannie and Freddie's implied government backing was working mostly to benefit the companies, their management and their investors, or U.S. homeowners (particularly low-income homeowners) as was part of these firms' HUD-administered housing mission.
"One thing was clear: Fannie Mae and Freddie Mac were given a government-sponsored monopoly on a large part of the U.S. secondary mortgage market.
"It is this monopoly, combined with the government's implicit guarantee to keep these firms afloat, that would later contribute to the mortgage market's collapse. (For more on the secondary mortgage market, see Behind the Scenes of Your Mortgage.)"
Fannie Mae, Freddie Mac And The Credit Crisis Of 2008
The financial crisis should show anyone willing to look how a three-way alliance between big business, the richest 5% of Americans and the state first inflated and collapsed the credit and housing bubbles and now works to utilize vastly increased state debt to shift the cost of the crisis onto the mass of the people.
Socialize cost while privatizing profit:
"Business and the rich insisted on (and the federal government complied with) corporate bailouts costing huge sums of public money.
"
The state borrowed that money rather than taxing big business and the richest 5 percent of citizens.
"Indeed, it borrowed a good deal of the money from big business and the rich who had funds to lend because 1) those funds had not been taxed, and 2) the depressed global economy offered less attractive alternatives for those funds.
"This three-way hegemonic alliance is now proceeding to utilize the suddenly and
vastly increased state debt to shift the cost of the crisis onto the mass of people.
"First, its members depict enlarged state debt as costing too much in state outlays for interest and repayment (threatening what the state can do for people in the future). Second, they insist that therefore '
there is no choice but to' cut public payrolls and services and raise taxes (in combinations depending on what voter constituencies will allow).
"In Europe this hegemonic maneuver is called 'austerity' and is operated by national governments.
"In the United States it is so far more a task of states and municipalities whose preferred words are 'budget crisis' and 'fiscal responsibility,' although the federal version is coming in the form of social security and Medicare reductions."
Prospects for the U.S. Left: Not Bad At All | Professor Richard D. Wolff
The State (which includes Fannie and Freddie and the Democrats) plays the role of the socially acceptable object of anger, protest and rage that should be directed at Wall Street and the richest 5% as well.
Until the Tea Party, for example, sees the state's complicity with big business and the richest 5% of Americans as equal parts of the same problem, it's only a matter of time before Republicans and Democrats and Wall Street come back to steal even more.
