The rightwing denial in this thread would be hilarious if it wasn't so pathetic.
Of course the leftwing denial is worse.
The Democrats passed the CRA when that idiot Carter was President and years later it comes back and bites this country in the ass big time almost collapsing our economy. Who would have ever thunk that using government pressure to give credit (for social justice reasons) to people that neither had the means or the inclination to pay back the money would tank our economy? Answer: not the Liberals. They never think about the consequences of their failed policies.
The CRA was enhanced during the Clinton administration but when Barney Queerboy, Obama, Peloski and Reid took over Congress after the 2006 election it really was able to do its damage.
After that it was just poor management by the Democrats. Bush was an idiot going along with the Democrats in 2007 and 2008. However, when that shithead Obama took over it got worse and we still haven't recovered.
Meanwhile the Democrats have given us a poor recovery, tremendously more debt, much larger destructive government, lowest workforce participation in 40 years, very high U-6 unemployment, highest poverty rate ever, most number of people on welfare, more taxes, worse health care and declining family income , not to mention a really shitty foreign policy. Thanks a lot Obama.
Now these butt pirates Democrats didn't do it all by themselves. The Republicans didn't stop the Democrats so they are partially responsible. When you elect big government shitheads whether they be Republican or Democrats you always get bad government.
RIGHT WING NONSENSE. SHOCKING
Q When did the Bush Mortgage Bubble start?
A The general timeframe is it started late 2004.
From Bushs Presidents Working Group on Financial Markets October 2008
The Presidents Working Groups March policy statement acknowledged that turmoil in financial markets
clearly was triggered by a dramatic weakening of underwriting standards for U.S. subprime mortgages, beginning in late 2004 and extending into 2007.
Q Did the Community Reinvestment Act under Carter/Clinton caused it?
A "Since 1995 there has been essentially no change in the basic CRA rules or enforcement process that can be reasonably linked to the subprime lending activity.
This fact weakens the link between the CRA and the current crisis since the crisis is rooted in poor performance of mortgage loans made between 2004 and 2007. "
http://www.federalreserve.gov/newsevents/speech/20081203_analysis.pdf
Right-wingers Want To Erase How George Bush's "Homeowner Society" Helped Cause The Economic Collapse
Bush's documented policies and statements in time frame leading up to the start of the Bush Mortgage Bubble include (but not limited to)
Wanting 5.5 million more minority homeowners
Tells congress there is nothing wrong with GSEs
Pledging to use federal policy to increase home ownership
Routinely taking credit for the housing market
Forcing GSEs to buy more low income home loans by raising their Housing Goals (2004)
Lowering Investment bank's capital requirements, Net Capital rule (2004)
Reversing the Clinton rule that restricted GSEs purchases of subprime loans (2004)
Lowering down payment requirements to 0% (2004)
Forcing GSEs to spend an additional $440 billion in the secondary markets (2003)
Giving away 40,000 PER YEAR free down payments (2004)
PREEMPTING ALL STATE LAWS AGAINST PREDATORY LENDING (2003)
But the biggest policy was regulators not enforcing lending standards.
FACTS on Dubya s great recession US Message Board - Political Discussion Forum
PLEASE, PRETTY PLEASE TELL ME ABOUT THESE BILLS THE DEMS PASSED JAN 2007-JAN 2009 THAT CRASHED THE US ECONOMY?? LOL
The precursor to the crash started the day the stupid Democrats enacted the CRA.
Bill Clinton strengthened the CRA. George Bush didn't put a stop to it.
It all came tumbling down when Barney Queerboy assumed chairmanship of the Finance Committee and that stupid 2006 Democrat Congress assumed power and didn't provide the oversight to stop the out of control Fannie Mae.
The government told the lending institutions to give credit to minorities and if that cause problems then the government would bail them, which is exactly what happen.
It is time for the Liberals to take responsibility for the mess they got this country into by trying to give credit to the minorities than neither had the means or inclination to ever pay the money back.
Of course Liberals never take responsibility for anything, do they?
Housing Finance and the 2008 Financial Crisis Downsizing the Federal Government
Housing Finance and the 2008 Financial Crisis
Overview
The financial crisis and recession of 2008 and 2009 were serious blows to the U.S. economy, so it is important to step back and understand what caused them. While some people have pointed to financial deregulation and private-sector greed as the sources of the problems, it was actually misguided monetary and housing policies that were the main causes of the crisis.
The expansion in risky mortgages to underqualified borrowers was encouraged by the federal government. The growth of "creative" nonprime lending followed Congress's strengthening of the Community Reinvestment Act, the Federal Housing Administration's loosening of down-payment standards, and the Department of Housing and Urban Development's pressuring of lenders to extend mortgages to borrowers who previously would not have qualified.
Meanwhile, the government-supported mortgage lenders, Freddie Mac and Fannie Mae, grew to own or guarantee about half of the United States' $12 trillion mortgage market. Congressional leaders pointedly refused to moderate the distortions created by the government's implicit guarantee that the firms would not be allowed to fail, which was the catalyst for their rapid expansion. Instead, Congress pushed them to promote "affordable housing" through expanded purchases of nonprime loans to low-income applicants.
The credit that fueled these risky mortgages was provided by the cheap money policy of the Federal Reserve. Following the 2001 recession, Fed chairman Alan Greenspan slashed the federal funds rate from 6.25 to 1.75 percent. It was reduced further in 2002 and 2003, reaching a record low of 1 percent in mid-2003—where it stayed for a year. This created excessive liquidity and generated a huge demand bubble.
Thus, the causes of our financial troubles were unusual monetary policy moves, unwise regulations, and misguided federal housing policies. These poorly chosen policies distorted interest rates and asset prices, diverted loanable funds into the wrong investments, and twisted normally robust financial institutions into unsustainable positions.
The Department of Housing and Urban Development budget costs taxpayers more than $50 billion annually, but the economic damage caused by ill-advised federal housing policies has cost the U.S. economy far more than that. For that reason, HUD housing finance subsidies should be repealed. Fannie Mae and Freddie Mac should be fully privatized and stripped of government guarantees, while being freed from federal mandates. With a neutral and noninterventionist approach to housing policy, federal taxpayers would save money and markets would work more efficiently to benefit everybody—except those seeking subsidies at taxpayer expense.
snip
The long-term remedy for the severely mistaken government monetary and regulatory policies that have produced the current financial train wreck is similar. We need to identify and undo policies that distort housing and financial markets, and dismantle failed agencies and departments, such as HUD, whose missions require them to distort markets. We should be guided by recognizing the two chief errors that have been made.
First, cheap-money policies by the Federal Reserve do not produce sustainable prosperity. Second, delivering mortgage subsidies by imposing affordable housing mandates on banks and by providing federal support to Fannie Mae and Freddie Mac bonds can backfire in a tragic way that damages the broader economy.
No shit!