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Except that if a bank did not loan money to people in zip codes where poor people lived... where there were no people with verifiable income worthy of the loans in question, or with credit scores that justified the loans, those banks would get dinged by the government and suffer the consequinces.
nice try. you lose. CRA FORCED banks to create ways to give lones to people who should not have gotten them. FORCED.
If a bank wanted to open a new branch in area x, a middle to upper middle class area, it was TOLD it HAD to make loans in area y which was predominately a poor area.
Too bad the days of making money on real estate are gone. The bubble is what allowed people to do that. The only way you can make money off of real estate now is to get a steal of a deal and sell high, or wait for the next disastrous bubble.
I don't know about you but I'm swooping up properties for pennies on the dollar. The collapse drove renting through the roof where I live so now I am getting properties with payback periods that are staggeringly short.
I got a good bead on the area I live in, I know the areas that are suffering from urban decay and encroaching on traditionally good neighborhoods, I am avoiding those as they will take another haircut once reality sets in to prospective buyers/renters/seller.
I got one place for $40,000 and a family of 4 lives there for $850/mo + utilities. Even if I had to factor in interest, its less than 5 years to have a free house that would have not been as profitable or worth the risk before the collapse.
The rental rates have gone up, prices of the house down, profit.
The derivatives market place was almost totally unregulated by design and intent. Not a lot has changed in the derivatives market place, other than being burned badly once most are more cautious about dealing in them.
99% of the financial markets are highly regulated. Some even have price controls and others have profit controls.
It's bizarre how partisan Republicans use the CRA as a scapegoat to blame all problems on. Either that or Obamacare.
Firms that were doing this bad lending -- countrywide for instance -- weren't even subject to CRA regulations.
It is bizarre how progressives refuse to admit their policies lead to themeltdown and it is even more bizarre how now they want MORE of those failed policies? Proof the looney left hates The USA !
Fools Never Learn | Michael Shedlock | FINANCIAL SENSE
And now, after whining for more bank regulations, the White House wants even looser lending standards. Let's lower our standards so everyone qualifies for a loan. Again! And while we're at it, let's make the banks immune from prosecution! Then let's put taxpayers at risk via "taxpayer-backed programs" for the whole boondoggle.
This is all so obviously stupid that only a fool could propose it.
Would conservatives complain if instead local governments were puished to allow developers the freedom to build smaller (and thus more affordable) properties?
Even Allan Greenspan had to surrender to congress. He had to finally admit that he was a magician that could not continue to make something out of nothing, His bag of tricks was empty. Those entitled to stay on top of the economic heap through leveraging and using money to make money had better realize that no one has any real money left.......The money system is a religion...a belief system..We believe that it exists and those on top are like high priests who understand that the treasury is empty.
But its discrimination to not give those loans!!!!!!! And they already blamed Bush for everything, so they ignore the real causes of the first crisis which include the loans people like Obama wanting to force banks to give these loans.
The real discrimination happens when developers are not allowed to build smaller properties that people can afford to buy, but you seem to not have any problem with that.
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