Comments on: Someone negate the points of this video, please.

By: Will

Will — Sun, 05 Oct 2008 20:27:42 +0000

Here’s some additional insight into why the 1977 (not 1975 as I stated in my previous comment) CRA (Community Reinvestment Act) cannot be blamed for the current fiscal situation: http://www.bradblog.com/?p=6466#more-6466
“…lending institutions covered by the CRA have a lower mortgage default rates than ones that aren’t…” “…It’s telling that, amid all the recent recriminations, even lenders have not fingered CRA. That’s because CRA didn’t bring about the reckless lending at the heart of the crisis. Just as sub-prime lending was exploding, CRA was losing force and relevance. And the worst offenders, the independent mortgage companies, were never subject to CRA — or any federal regulator. Law didn’t make them lend. The profit motive did…”

By: Will

Will — Sat, 04 Oct 2008 12:43:23 +0000

To negate the points of the video, take a look at the nyt article http://www.nytimes.com/2008/10/03/business/03sec.html?partner=rssnyt&emc=rss “Agency’s ’04 Rule Let Banks Pile Up New Debt”. It was not the initial 1975 act referenced in the video. Note also that the other major contributing factor to the current fiscal mess is the 10 trillion deficit. 80% of our deficit was created by 3 presidents – Reagan, Bush I & Bush II. GW is the first president to not fund a war. Our huge deficit spending, and the fact the the failing dollar is used to back many smaller economies, is the underlying cause for much of the current crisis (along with lack of reasonable regulation and oversight as explained in the above mentioned article.