Question by Change Now: Why are people still hoodwinked into believing the Community Reinvestment Act is major reason why we’re here?
What a load of propaganda crap that the right has plopped on the American psyche.
There are people out there who actually think that the CRA brought down our economy. What fools,
The CRA was created at a time when subprimes could be easily absorbed into the market. They would make up less than 5% of all mortgages.
The current catastrophe was caused by SECURITIZATION of mortgages. Harvard MBA’s used derivatives and came up with a mathematical model for rich people to get richer because they weren’t making enough money thru other fixed returns like T-Bills.
The banks made tons and tons of money by packaging this load of crap and selling them onto pension funds, etc. all around the world.
When people couldn’t pay the monthly minimums and the underlying asset prices stopped rising and began to fall, the whole house of cards came crashing down. The CRA loans to poor folks with small loan balances played a small role. Most of the bad loans were on speculators or on big mortgages
Best answer:
Answer by M Taylor
The root of the problem is that the average American is a moron. Its not PC to say this and plenty of people who profit from those morons will be quick to feign indignation if anyone says it, but it doesn’t make it any less true.
There is a reason that you have more votes for American Idol then the next President of the United States.
Know better? Leave your own answer in the comments!
