The Community Reinvestment Act (CRA)* resulted in blackmailing banks into making subprime loans via creating a government entity which
- oversaw and graded banks' compliance in making subprime loans, and
- blackmailed banks into complying via tactics such as
- threatening to damage banks' public reputations via charges of racist lending
- impeding banks' abilities to expand and to merge with or purchase other banks.
The Community Reinvestment Act isn't the sole source of the current financial crisis. It took the government-sponsored entities Fannie Mae and Freddie Mac to supersize the hazards created by the CRA.You know, if you've been alive the past two decades, or if you watch this video, Dems actively held a "racism" hammer above the heads of fearful Repubs. Who could oppose government forcibly expanding mortgages in "underserved" communities??? Repubs were not up to the task.
In 2004 Fannie Mae's federal regulator issued a critical preliminary report on Fannie Mae's accounting policies, financial controls and financial reporting process. I believe it was this report (covered in this Washington Post story) that is in part the subject of the instructive House committee hearing highlights video featuring Democratic Reps. Gregory Meeks (he's "p***** off" by criticism of Fannie Mae and Franklin Raines), Maxine Waters ("we do not have a crisis at Fannie Mae"), Lacy Clay ("I get the feeling that the markets are not worried about the safety and soundness of Fannie Mae and Freddie Mac") and Barney Frank ("It serves us badly to raise safety and soundness as a kind of general shibboleth when it doesn't seem to be an issue").
If Repubs could have seen into the future: I hope they would've had the guts to throw themselves into the breach back then - to save the nation from financial mess - even at cost of their political careers. Repubs are taking the political hit now. The party may as well have taken the political hit then - when something might still have been done to prevent this mess.
As for Dems: they are termites eating away at the greatness of our nation.
Our nation inhabits a moment - several decades after the Civil Rights Act and the repeal of Jim Crow - when our citizenry act like damn fools about race. Fannie Freddie Affirmative Action FUBAR is clear evidence of our foolishness. We are reaping what we have sown.
We also stand athwart a moment - two decades after Reagan - of passive acceptance of socialist governance. Fannie Freddie Affirmative Action FUBAR is clear evidence of this. We will have hell walking our culture of freedom back into the light.
As citizens, we must find our grace and courage. Along with our other daily activities, we must stand, in force, against the tides of political correctness and socialism which threaten us. We have been silent in public. I have been silent in public. Our silence has brought our culture of freedom to this juncture of foolishness.
I am not recommending rashness. I am not recommending career suicides. I am recommending grace. I am saying: "Stand up for truth." There are graceful ways to stand against the political correctness and socialism which threaten us. "Stand, men of the West!"
*NYT noted, in 1999, CRA was "a solution in search of a problem." Ed Morrissey:
While lending to minority applicants still lagged behind that of white applicants, the economic boom of the 1990s had closed that gap. In the previous five years, mortgages awards to Hispanics jumped 87%, to African-Americans by 71%, and Asians 46%. Mortgages to white applicants also increased by 31%, which proved that a rising tide indeed lifted all boats, without government intervention to impose “fairness”.Affirmative Action FUBAR. Dems trolling for votes. Dems publicly supporting Fannie and Freddie in further effort to troll for votes. Repubs would not oppose - at least not in large enough numbers to be effective - because opposing would cost votes. This is the truth of what happened. Truly professional media would report the truth.