CRA blame for housing bubble is racist scapegoating baloney

[tsharpmac420]

Society has even developed a term for the effects of this act, its called being nigger rich.

[tsharpmac420]

you have to put in the w w w

[tsharpmac420]

and guess what obama and DOJ are once again forcing lenders to give sub-prime loans.

[tsharpmac420]

CRA did cause the collapse, banks were forced to give sub-prime loans even though those people could not pay them back. If you read the law, it talks about sound and safe operation of a financial institution, giving loans to people who cant pay you back is not sound or safe, to make that safe lenders where forced to package those sub-prime loans and sell them as securities, there is only so much debt an economy can take before it implodes, it took us 31 years to reach that threshold.

[liverleef]

@tsharpmac420 Yeah, but the CRA only applied to FDIC insured banks. NOT independent mortgage companies like Countrywide, yet they are the ones who produced the most sub prime mortgages. Please explain how independent mortgage companies like Countrywide and Ameriquest were "forced" to give sub prime mortgages.

[tsharpmac420]

@liverleef I know longer hold the view that any 1 person, act or company is to blame. That blame rests on every one from the people to the government et el

[liverleef]

@tsharpmac420 I think this is a much more accurate perspective.

[paidmeat]

Bullshit....First of all the CRA ACT wasn't for the "Borrower" it was a rating for the LENDER. (The bank) and if a bank didn't lend to minorities, the Bank would get a bad CRA rating. A 5 was good, a 1 was death for the Bank. Meaning the Govt. would not allow the banks to borrow from other banks, the Treasury or Securities. The banks were FORCED to make bad loans to people who could not pay Thank you Janet Reno and the Democrats - No RAP MUSIC can change the fact pal but, nice try

[tsharpmac420]

@paidmeat it wasnt specificly minorites it included all low income borrowers.

[liverleef]

@paidmeat Oh, so it was about lending to minorities? Funny, I read the CRA and missed that. I'm sure you can quote the statement about lending to minorities. I'll be waiting.

[tsharpmac420]

@liverleef you missed it because you didn't read it or skipped over the purpose stated at the begining, this shit below is straight from the Office of Comptroler of Currency "Prohibits redlining (denying or increasing the cost of banking to residents of racially defined neighborhoods), and

•Encourages efforts to meet the credit needs of all community members, including residents of low- and moderate-income neighborhoods"

[liverleef]

@tsharpmac420 That isnt a statement from the actual legislation. The law itself makes no mention of the number mortages to be issued to minorities. The law states that banks should lend to people in certain neighborhoods. Its about neighborhoods, not the color of the person applying for the loan. You make a valid point though that these neighborhoods are likely to be racially defined. Fair enough.

[tsharpmac420]

@liverleef here is a link to the FDIC page with the actual law text, when you get to the page hit ctrl-F and type in minority, it shows up 11 times in the bill. Read the context they are all used in, most make it obvious that the intention of the CRA was to help minorities get loans and credit... fdic.gov/regulations/laws/rule­s/6500-2515.html

[liverleef]

@tsharpmac420 I read it. You are correct that it mentions minority several times. Every instance I read was stating that majority owned institutions can receive CRA credit for cooperating with minority owned businesses and organizations. So this would help improve their chances of getting a satisfactory or outstanding CRA rating. I didnt see where it said that the mortgages that banks issue are to be given to individuals who are minorities.

[tsharpmac420]

@liverleef that link wasn't the whole act, it was only the consumer protections. The other parts of the law make it clear that the whole purpose of the it was to HELP MINORITIES get loans for cars, homes, businesses and plain old credit. It put an end to the practice of redlining, which was a legal form of discrimination that occurred disproportionately in low-income, predominately minority communities with rates of single mothers far higher than the national average

[angrywoodchucksblog]

The CRA made banks make loans to low income people or they couldnt expand.It failed as banks wouldnt take risks w/ this groups high default rate.For votes,politicians removed the risks by buying the bad loans w/ Freddie Mac.Everything after was due to this.W/O loss fears,banks loan to anyone.The CRA was govt making banks give loans that would fail.This isnt a racist thing, its a govt creating laws for votes.Youre the only person Ive seen tying racism into it.This is about votes, not racism.

[islandmuffin]

“the political response to rising inequality – whether carefully planned or the path of least resistance – was to expand lending to households, especially low-income households....public policies, like tacit acceptance of the implicit public guarantee enjoyed by Freddie Mac and Fannie Mae, encouraged people to bet big on housing and ultimately led to an unstable financial system." - Raghuram Rajan, former chief economist of the International Monetary Fund

[collapseofthedollar]

2 1/2 stars for a reason. LOOK IT UP

[atypicalcalifornian]

wow what terrible propaganda, anyone who believes this nonesense look up CRA yourself, and come to your own conclusions. SUBPRIME= not likely to be able to pay

[therealcaptobvious]

72% were caucasians who were upper middle class using ARM loans to speculate.

Many were realtors and real estate agents. HUD has the 411 on it all.

You might want to do a fact check on "propoganda".

[atypicalcalifornian]

what do whites have to do with it, thats retarded. BY THE WAY, the HUD and vie CRA required their GSEs to give more than half their loans to subprime lenders. 20 percent went to people who made under 60% the medium area income.

[therealcaptobvious]

why are you so threatened by the truth? Can you even support your arguement? cite your source. Or can you?

[atypicalcalifornian]

i thought you were more knowledgeable on the subject apparently not. Anyway why do you bring race into this? I think you've got issues man

[therealcaptobvious]

and you have yet to prove me wrong on this.

Support your arguement, or can you? i delete ad hominems. Look it up. If you're going to continue with empty garbage, i'm gonig to assume that you're a realtor trying to avert blame.

[atypicalcalifornian]

i don't have to prove anything YOU look it up

[therealcaptobvious]

I don't know why you're so threatened with this information.

[gwstevenson2005]

No facts in this video. Simply suposition and conspiracy theories. Fact: Lenders were sued to reduce lending standards. Fact: Both unqualified families and speculators used lower standards to drive up prices. The mix is not important. What is important is liberal democratic social engineering caused this economy to tank. Repubs tried to save it, although not hard enough.

[therealcaptobvious]

Nice try, but you're totally lying. The vid clearly states that Compliance Technologies claimed that 72% of Subprime borrowers were caucasian. A lot of them just happened to be realtors looking for a quick buck. If you want to see it, the HUD has the facts. They'll back up what I'm saying 100%. Not to mention the historical artifacts are 100% correct. Unfortunately, you brought absolutely no arguement to the table so you failed to prove me wrong.

[therealcaptobvious]

and as a matter of fact, it's YOU who's turning the republican party in a racist one. Look buddy, I know plenty of caucasian liberals who were trying to make a quick buck by flipping houses. This isn't even a bipartisan deal until you turned it into one. As a matter of fact, it was the republicans who only wanted to help PRIMARY owners, not the speculators. Which is the right answer regardless of race. The joke is on you. Game over.

[brottha]

"Neocons can't be trusted with objectivity."

Ain't that the truth! Thank you for compiling this!

[therealcaptobvious]

np. This really angered me. First it showed that the group has NO interest in resolving the problem. Then people actually became synchopants and bought into it because they can't apply numerical reasoning. And lastly, they're going to create misery for nonguilty parties while they're at it.

Just wish I heard more people call it out.

[keepitlegalmygeeza]

look, i agree it's not tottally the people who use the loan's fault, but to put blame on one group and try to say, well that's the reason we're here is rediculous. regardlous of how it happened. kinda like sueing smith and weston for shooting and killing a guy. yeah it's there gun, but they didn't shoot it.

[calligraphypen]

Thanks for this educational video. They should teach economics and books on something your putting into this video in elementary and middle schools.

[e0035429]

Just another liberal slanted attempt to push the blame on people that tried to avoid this disaster. Clinton and the liberal dems put pressure on the banking industry to make NINJA loans(no income,no job or assets). Yes, that did have a tremendous impact on the rising price of real estate. EVERYBODY could get some, just not many could pay the payment.

"Working at McDonalds does not qualify you for a McMansion". Socialism will destroy capitalism. The Obama nation is coming....

[keepitlegalmygeeza]

try to not put liberal in every sentence, it might make it more or less effective.

[therealcaptobvious]

e0035429, actually I'm a fiscal republican and Clinton's biggest critic and i'm calling this racism out. And yes the CRA thing was a moral hazard. If 72% of the ARM borrowers were white, how in the world would those who were helped by the CRA guilty of puffing the bubble? This is just basic numerical reasoning, they don't have the numbers or the financial means to pull it off. The real estate insiders did a bunch of it.

[RRRRIC]

How do you expect anyone to take you seriously with that foul language being thrown out as you are trying to make your point? Wise up!

[whythebailout]

What foul language? I took you seriously, but maybe RRRRIC would have taken you more seriously if you were an angry white guy in a suit screaming about how it's all the minorities and socialists fault.

[sonic2batt]

You also forgot to mention that the inflated house prices helped the local governments with mortgage tax and property tax.

[fitchburgslut]

incorrect, houses are assessed by rue professional that know the actual worth of a house, that is what property tax is based on, and these assessed values did not folow the insane rise of prices, they stayed real, example i was going to buy a place 4 years ago with an ask of 220,000 and an assessed value of 150,000, following previous values and selling prices, the assessed value rose very little, the selling price shot up after 2000, total bullshit by real estate agents

[sonic2batt]

Well, in New York, greedy local governments went right along with the bloated home prices and assessed them on those values, if not greater.

[therealcaptobvious]

fitchburgslut, the appraisers were pressured by the brokers and the lenders to keep the values assessed higher than they should've been. The Credit Defaults were not secured by bonds like they were supposed to be, so the lenders needed the ARM borrower's interest and fees to come up with the payment obligations to the CMO investors. If the appraiser didn't cook the price, they lost their jobs.

[default99telecom]

Arab contributions to Obama...Ka CHING! ACORN passing out packs of Newports to bums on the street to register to vote Obama. Motha fuckan niggas need to be more discreet on corruption and liberal tactics.

[therealcaptobvious]

Naw. You're faulting the entire group because of a few idiots. That's like calling us white folks the devil because of the likes of Charles Manson or Jeffrey Dahmer. Maybe if we held people accountable as a true judge of character, then people would have less incentive to act like idiots. You know I'm riiiight.

[therealcaptobvious]

I promise you that most of the speculators that increased the cost of homes through demand are infact white. Whites have most of the money to do it with. You dont' seem to have any concept of numerical problem solving capabilities or concept of how the economy works. Which is why you're so gullible to hatred.

[keepitlegalmygeeza]

color has nothing to do with the fight anyway, it's stupidity with money. and do you want to put someone in office that is stupid with money? we already did, so it's answered by america, but nonetheless.

[stifflersmom12]

Nice man. Keep up the good work.

[dfctomm]

You're right in many respects. Neither deregulation nor the CRA was to blame for the credit crisis, although they do play a part. You should drop the reference to racism as well. The word has been used out of context so often that it's meaningless now.

[therealcaptobvious]

Actually the context does have meaning. What I'm trying to point out is that the Neocons have been too easily milking their manipulation using their xenophobic undertones to make up for their own shortcomings. It tells me that this group is unwilling to solve this problem and that they don't care about people. It's 2008, it's disgusting that they're still using these tactics. It should be meaningless by now, but it's not.

[chena3]

mr bubble

made me laugh ..

had to click..

rock on ..very informative

peace out my friend

[therealcaptobvious]

i'm hoping the information isn't too redundant. Just had to make a point.

Thank you.