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Politics : American Presidential Politics and foreign affairs
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To: Steve Lokness who wrote (32977)3/2/2009 10:06:53 AM
From: Peter Dierks  Read Replies (1) of 71588
 
Democrats Behind CRA Cover-Up
by Ernest Istook

10/15/2008

As always, it’s the cover-up that sinks people. Liberals are working overtime to cover up their role in the mortgage meltdown. Not only did they block attempts to reform Government Sponsored Enterprises (GSEs) such as Fannie Mae and Freddie Mac before they could drag down our economy, but liberals also abused the Community Reinvestment Act (CRA), turning it into a vehicle for directing loans to unqualified homebuyers.

The left knows that whoever shapes public understanding of what caused today’s economic crisis can shape America’s politics -- and its future -- for a great many years to come. Thus, they’re pushing the notion that too little government regulation was at fault.

If the country buys this idea, liberals can enact a carbon-copy of FDR’s response to the Great Depression, building a larger, more activist and ever-more-controlling federal government. They can exploit the mess by establishing a conventional wisdom that more government is the solution, rather than understanding how big government is a root cause of the current financial meltdown.

Claiming it all sprung from a lack of regulation is a half-truth, and a Yiddish proverb says a half truth is a whole lie. ...

...“For 1996, the Department of Housing and Urban Development (HUD) gave Fannie and Freddie an explicit target -- 42 percent of their mortgage financing had to go to borrowers with income below the median in their area. The target increased to 50 percent in 2000 and 52 percent in 2005.
...

humanevents.com
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