ChesusRice
Well-Known Member
CRA is just a dog whistle racists useThe government forced them to? You've been a victim of propaganda. No one forced the banks to do anything. You can only be referring to the CRA, which didn't force the banks to do anything. Do you know what the consequences a bank would face for having a low CRA score? It would make it more difficult to merge with another bank. That's it. But it didn't matter. Those banks had kick ass CRA scores, so they can't use that as an excuse. In fact whenever they've been called in front of Congress to justify their actions, they've never brought the CRA up. The only people who bring it up are douchebags like Limbaugh and Hannity.
You're also forgetting that over 50% of the subprime mortgages were not given by institutions regulated by the CRA.
You're right that Fannie and Freddie were leveraged by some ridiculous amount and correct that it was the government that allowed them to do it. But they only accounted for around 30% of the bad loans. What about the other 70%? Also, they only played a small part, they didn't bundle them together and collude with rating agencies and sell them off as AAA investments.
You're baffled? I'm baffled at how easy it is to manipulate people. I've had this same discussion on at least a dozen forums with dudes who either read something, saw something, or heard something from a source with an obvious agenda. If I was on some left wing site, or watching MSNBC, or listening to friggin Alan Colmes, I would probably double check their facts before spewing it all over the place.
I'm also baffled that peoples' rage against the government completely blinds them against every other evil that exists in our society. You're so naive to think that banks are working for the good of humanity and are really just innocent victims in all of this. The banks run the SEC. They are notorious for not prosecuting anybody for anything. They knew about Madoff for a decade before he got busted and he only got busted because he fucking turned himself in! Tell me more about how victimized the banks are.
What you havent pointed out is that Loans that would even fall under the auspices of the CRA do better than the statistical mean of all mortgages
The CRA only said that you couldnt deny a loan based on it's geographical location
It didnt say anything about how the underwriters at the bank qualified an applicant
Everytime I hear the CRA mentioned it is usually by someone who refers to Obama as a "community organizer"
In other words
a racist