The haggardness of poverty is everywhere seen contrasted with the sleekness of wealth, the exhorted labor of some compensating for the idleness of others, wretched hovels by the side of stately colonnades, the rags of indigence blended with the ensigns of opulence; in a word, the most useless profusion in the midst of the most urgent wants.Jean-Baptiste Say
Your response is uneducated, uninformed and partisan.
Now onto Liblady :FALSE. In order to qualify for prime fed rates, make an aquisition, merger or be purchased themselves a bank was required to satisfy CRA regulators that they were within mandated rates on CRA qualifying loans. Its written into the law and banking rules and regulations. CRA was strenghtened in 95,99, and 2005 and again in 2007. If a bank wanted to grow they complied by whatever means they could cook up.how many times does someone have to tell you that CRA had absolutely NOTHING to do with the sub prime crisis? those regulations didn't force ANY institution to make bad loans. just quit already.
Did banks qualify for those regulations by using predatory lending? Absolutely. Did banks write paper they knew was terrible, bundle it and pass it to F&F? Absolutely. When government regulation not only encourages but mandates bad paper and facilitates hiding the same, you are going to get a bad result and almost never the one you want. To say that the CRA has nothing to do with it is partisan positioning. Bank margings are 4 to 6%. Forcing a bank to write 2% of bad paper a year will bankrupt them in a big hurry and put all of their underwriting at risk. Its not the amount or percentage its the cascade effect from the bad paper going bad and chaining into other paper the bank has written--dropping the market.
I wish we could just lie to people for a while, tell them unemployment is down for the next 3 or 4 months, jack up the GDP slightly, give mainly just good news. I'll bet the economy would start improving. All the gloom and doom makes people want to hold on to their money. Always thought economic news was a self-fulfilling prophesy.
There was no mortgage crisis in '94, '98, or '02. The subprime fiasco really exploded between '02 - '06, and the VAST majority of loans were given out by private lenders who weren't even regulated under CRA. Careful ... you can throw out your back missing the ball by that much!