Worse than Shelby's idiocy is the unending butt covering the racist bigots are spewing. The claims that the Community Reinvestment Act caused, or even contributed, to the "Tulip Trade" in US real estate is chief among them.
I have spent 24 hours trying to find a web reference to any bank which was fined, warned or even criticized from 2003 to 2008 by any federal reserve regulator for a CFA related issue. Thus far I count "0." Moreover, the idea that a bank examiner would put his/her name on an exam report which even suggested that a bank should issue loans without regard to the credit risk posed by the borrower is incredible on its face.
Consider the facts. History says that institutions... be they financial, legal, military, educational, political, religious or simply human... will go to extreme lengths including open and notorious criminal acts if they can profit from discrimination against a minority group. Now... without the least bit of evidence to support them... these cretins are falling all over themselves to assert that the largest and most politically connected financial institutions in the world were "forced" to bankruptcy all because of an arcane "rule" written in 1995... 10 years before the Tulip Binge began... forced them to "help" minorities by looking at their loans vs deposits by geographic area?!!
If anybody needed evidence that racist bigots were alive and well they have definitely got it now. But don't take my word for it. Let's ask that bastion of radical, wild-eyed, "N-word lovers" at BUSINESS WEEK:
It’s telling that, amid all the recent recriminations, even lenders have not fingered CRA. That’s because CRA didn’t bring about the reckless lending at the heart of the crisis. Just as sub-prime lending was exploding, CRA was losing force and relevance. And the worst offenders, the independent mortgage companies, were never subject to CRA — or any federal regulator. Law didn’t make them lend. The profit motive did. And that is not political correctness. It is correctness.
businessweek.com
Ooops! No help for the deluded bigots there... Hey! Maybe we can get Ron Paul to stand at the door of the House and refuse to let anyone in until they give him some evidence to support his case!
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