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Just the facts;
In 2008, the United States would enter a recession that was 32 years in the making. Actions taken by congress starting in 1977 would begin the process that led to the catastrophic collapse of the housing market, which directly brought about the banking crisis that triggered the recession. The Community Reinvestment Act (CRA) passed in 1977 would create the framework for a machine of catastrophe. Building upon that framework, the Housing Enterprises Regulatory Reform Act of 1992 would force banks by law, to write sub-prime loans in federally mandated numbers that would eventually cause banks to collapse in America and around the world. Exacerbated by ACORN (Association of Community Organizations for Reform Now) and the Cloward-Piven Strategy of Orchestrated Crisis, the economy continues to spiral down in 2011.
First, the Community Reinvestment Act of 1977, known as CRA, was designed to ensure banks serviced their entire communities, community being defined by the area from which the bank accepted deposits. CRA made law the concept that banks should make loans to everyone, and follow standards of safe banking at the same time (FDIC). This is a contradictory mandate, as banks cannot make good safe loans to borrowers who are high risk. It is not the bank that makes the borrowers high risk; it is the borrowers themselves who are the risk. This is the foundation upon which our current crisis is built. The rate at which these types of borrowers default on their loans is higher than loans made to those with sounder credit and better more reliable sources of income, making them unsafe for both the bank and the borrower. CRA dictated to banks that they were to disregard those safe practices and begin to meet the needs of what supporters called the underserved market, those with poor credit and or very low incomes who could not otherwise get a loan. Alex Schwartz in an article for Fannie Mae reported that Community Organizations (ACORN for example) could and did challenge banks trying to merge or acquire new assets on meeting their CRA requirements and “by 1997 more than 300 negotiated and voluntary agreements had been launched, amounting to more than $353 billion (National Community Reinvestment Coalition [NCRC] 1998)” (qtd. in Schwartz). The dollars wrapped up in the Sub-prime market would only continue to pile up in the ten years following that report. This is the frame work that would hold the machine together. What is perhaps as relevant, Fannie Mae and Freddie Mack knew as early as 1997 what was happening. The Role of Congress in the Recession of 2008 (Vanity)
Barney Frank and Maxine Waters claimed President Bush was fear mongering and that all was well. He was seeking more regulations - his request was denied. Now look where we are - yeah it's Bush's fault.
This is about a bank not involved in bad lending practices sponsored by government (giving money to people who can't pay it back) - yet surviving a tsunami of bank closures because they didn't follow bad government policy.
Just the facts;
In 2008, the United States would enter a recession that was 32 years in the making. Actions taken by congress starting in 1977 would begin the process that led to the catastrophic collapse of the housing market, which directly brought about the banking crisis that triggered the recession. The Community Reinvestment Act (CRA) passed in 1977 would create the framework for a machine of catastrophe. Building upon that framework, the Housing Enterprises Regulatory Reform Act of 1992 would force banks by law, to write sub-prime loans in federally mandated numbers that would eventually cause banks to collapse in America and around the world. Exacerbated by ACORN (Association of Community Organizations for Reform Now) and the Cloward-Piven Strategy of Orchestrated Crisis, the economy continues to spiral down in 2011.
First, the Community Reinvestment Act of 1977, known as CRA, was designed to ensure banks serviced their entire communities, community being defined by the area from which the bank accepted deposits. CRA made law the concept that banks should make loans to everyone, and follow standards of safe banking at the same time (FDIC). This is a contradictory mandate, as banks cannot make good safe loans to borrowers who are high risk. It is not the bank that makes the borrowers high risk; it is the borrowers themselves who are the risk. This is the foundation upon which our current crisis is built. The rate at which these types of borrowers default on their loans is higher than loans made to those with sounder credit and better more reliable sources of income, making them unsafe for both the bank and the borrower. CRA dictated to banks that they were to disregard those safe practices and begin to meet the needs of what supporters called the underserved market, those with poor credit and or very low incomes who could not otherwise get a loan. Alex Schwartz in an article for Fannie Mae reported that Community Organizations (ACORN for example) could and did challenge banks trying to merge or acquire new assets on meeting their CRA requirements and “by 1997 more than 300 negotiated and voluntary agreements had been launched, amounting to more than $353 billion (National Community Reinvestment Coalition [NCRC] 1998)” (qtd. in Schwartz). The dollars wrapped up in the Sub-prime market would only continue to pile up in the ten years following that report. This is the frame work that would hold the machine together. What is perhaps as relevant, Fannie Mae and Freddie Mack knew as early as 1997 what was happening. The Role of Congress in the Recession of 2008 (Vanity)
Barney Frank and Maxine Waters claimed President Bush was fear mongering and that all was well. He was seeking more regulations - his request was denied. Now look where we are - yeah it's Bush's fault.
You really need to understand the difference between what a "fact" is, and what "opinion" is from your right wing rag.
This is so common with the uneducated. They think that if they read something agreeable to them...it must be true.
You really need to understand the difference between what a "fact" is, and what "opinion" is from your right wing rag.
This is so common with the uneducated. They think that if they read something agreeable to them...it must be true.
This has turned into a troll post...bye.
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