Quote:
Originally Posted by Sun Tzu
I didnt state the CRA was the lone culprit. To say it played no part is absolutley false, and sounds like an ACORN ad. My argument was addressing the statement "the banks" without any government involvement were the sole cause. It also seems like theres great effort to turn some adults that took risk and failed into victims.
I never stated the US was libertarian utopia (I wish it were), you dont have to look any further past the FRB.
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What is "some part" of the mess? 1/4 of the subprime loans made were done by banks regulated by the CRA. Now, this doesn't mean that 1/4 of the subprime loans were made because of the CRA. In fact, the vast majority of papers written on the CRA even before this latest recession found the CRA to be essentially meaningless. So even while looking at the institutions that were in fact affected by the CRA, the subprime loans that were "caused" by the CRA were a minority.
All of this, of course, without even mentioning the big issue of the causal chain: Banks regulated by the CRA did fewer subprime mortgages than unregulated banks, so how can it be that the CRA pushed banks to do these loans?
The idea that the CRA played any meaningful part in this is simply not corroborated by any data. If you have any data that proves your point, I would love to see it, as opposed to talking points.