IBD: Carter More to Blame for Financial Crisis Than Bush or McCain

[Shadow]

Snip:

Much as Bush-hating media members conveniently ignore historical events that led to the invasion of Iraq in March 2003, their current finger-pointing at the White House, John McCain, and all Republican politicians for the collapse of the financial services industry lacks any honest assessment of decades-old legislation that laid the groundwork for today's problems.

In particular, 1977's Community Reinvestment Act which required banks and savings institutions to make loans to the lower-income areas in the communities they served.

Snip:

To hear today's Democrats, you'd think all this started in the last couple years. But the crisis began much earlier. The Carter-era Community Reinvestment Act forced banks to lend to uncreditworthy borrowers, mostly in minority areas.
Age-old standards of banking prudence got thrown out the window. In their place came harsh new regulations requiring banks not only to lend to uncreditworthy borrowers, but to do so on the basis of race.

These well-intended rules were supercharged in the early 1990s by President Clinton. Despite warnings from GOP members of Congress in 1992, Clinton pushed extensive changes to the rules requiring lenders to make questionable loans. [...]
Failure to comply meant your bank might not be allowed to expand lending, add new branches or merge with other companies. Banks were given a so-called "CRA rating" that graded how diverse their lending portfolio was. [...]

IBD: Carter More to Blame for Financial Crisis Than Bush or McCain | NewsBusters.org

 

[AllieBaba]

it's too much for their tiny pea brains to absorb all in one sitting.

 

[Haro]

Snip:

Much as Bush-hating media members conveniently ignore historical events that led to the invasion of Iraq in March 2003, their current finger-pointing at the White House, John McCain, and all Republican politicians for the collapse of the financial services industry lacks any honest assessment of decades-old legislation that laid the groundwork for today's problems.

In particular, 1977's Community Reinvestment Act which required banks and savings institutions to make loans to the lower-income areas in the communities they served.

Snip:

To hear today's Democrats, you'd think all this started in the last couple years. But the crisis began much earlier. The Carter-era Community Reinvestment Act forced banks to lend to uncreditworthy borrowers, mostly in minority areas.
Age-old standards of banking prudence got thrown out the window. In their place came harsh new regulations requiring banks not only to lend to uncreditworthy borrowers, but to do so on the basis of race.

These well-intended rules were supercharged in the early 1990s by President Clinton. Despite warnings from GOP members of Congress in 1992, Clinton pushed extensive changes to the rules requiring lenders to make questionable loans. [...]
Failure to comply meant your bank might not be allowed to expand lending, add new branches or merge with other companies. Banks were given a so-called "CRA rating" that graded how diverse their lending portfolio was. [...]

IBD: Carter More to Blame for Financial Crisis Than Bush or McCain | NewsBusters.org

Granted, the CRA did start the process that led to this financial crisis. However it only set the stage and things could have been done after its enactment to prevent the current recession..

 

[dilloduck]

Affrimative action lending------great. Can we just go ahead and call it buying votes ?

 

[Haro]

Affrimative action lending------great. Can we just go ahead and call it buying votes ?

Why does that seem to have nothing to do with the thread?

 

[dilloduck]

Why does that seem to have nothing to do with the thread?

you can't read ?

 

[Haro]

you can't read ?

What are you referring to when you said your first post?

 

[Red Dawn]

newsbusters.org/blogspot/neil_shepard.opinion_piece.


LOL

 

[Haro]

newsbusters.org/blogspot/neil_shepard.opinion_piece.


LOL

Does nnyone find it funny that people still think the media is against the Republicans?

 

[dilloduck]

What are you referring to when you said your first post?

Affrimative action lending practices. Are you claiming that there were none ?

What do you think "high risk" really means ?

 

[Haro]

Affrimative action lending practices. Are you claiming that there were none ?

What do you think "high risk" really means ?

The act was specificall for small business and home owners if I am not mistaken.

 

[Shadow]

Granted, the CRA did start the process that led to this financial crisis. However it only set the stage and things could have been done after its enactment to prevent the current recession..

right.. GOP warned Clinton 1992...ignored,nothing happened.

President Bush warned Congress 2003...Congress ignored him.

McCain warned Congress again 2005,2006....Congress ignored him..


Meanwhile

Chris Dodd
Barack Obama
John Kerry

Collected tons of cash.

 

[dilloduck]

Age-old standards of banking prudence got thrown out the window. In their place came harsh new regulations requiring banks not only to lend to uncreditworthy borrowers, but to do so on the basis of race

IBDeditorials.com: Editorials, Political Cartoons, and Polls from Investor's Business Daily -- Congress Lies Low To Avoid Bailout Blame

 

[Shadow]

newsbusters.org/blogspot/neil_shepard.opinion_piece.


LOL

Are you saying Carter's 1977's Community Reinvestment Act does not exist?

if so provide a link.

 

[Haro]

Are you saying Carter's 1977's Community Reinvestment Act does not exist?

if so provide a link.

There is a friggen government website for it!

 

[dilloduck]

There is a friggen government website for it!

so what are you disputing ?

 

[Haro]

so what are you disputing ?

I never did...

 

[Shadow]

IBDeditorials.com: Editorials, Political Cartoons, and Polls from Investor's Business Daily -- Congress Lies Low To Avoid Bailout Blame

I especially like this damning blerp

Here's the lead of a New York Times story on Sept. 11, 2003: "The Bush administration today recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago."

Bush tried to act. Who stopped him? Congress, especially Democrats with their deep financial and patronage ties to the two government-sponsored enterprises, Fannie and Freddie.
"These two entities — Fannie Mae and Freddie Mac — are not facing any kind of financial crisis," said Rep. Barney Frank, then ranking Democrat on the Financial Services Committee. "The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing."


Who chose that hack to head up the Financial Services Committe? I'm thinking we need some major congressional hearings!!

 

[Shadow]

There is a friggen government website for it!

I was talking to Red Dawn who was poo pooing the threads source.

 

[Haro]

I especially like this damning blerp

Here's the lead of a New York Times story on Sept. 11, 2003: "The Bush administration today recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago."

Bush tried to act. Who stopped him? Congress, especially Democrats with their deep financial and patronage ties to the two government-sponsored enterprises, Fannie and Freddie.
"These two entities — Fannie Mae and Freddie Mac — are not facing any kind of financial crisis," said Rep. Barney Frank, then ranking Democrat on the Financial Services Committee. "The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing."


Who chose that hack to head up the Financial Services Committe? I'm thinking we need some major congressional hearings!!

Those companies did not cause the current crisis. There is no doubt they they did cause it to occur a little sooner than it would have, though.