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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?


To: TimF who wrote (459082)2/24/2009 3:38:36 PM
From: tejek1 Recommendation  Read Replies (1) | Respond to of 1574098
 
The CRA worked fine all the way through the 80s and 90s

In the same sense that your breathing would work fine if you where trapped in a cave that was filling up with water, until there was no more air for your to breathe. The problem didn't start when you drowned, it started when the cave started to fill up, or maybe when you entered it in the first place. For the CRA, the "cave" started to "fill up" right away, it took awhile to fill, and the speed of the filling may have accelerated later, but the bill the problem that was one of the reasons behind the housing bubble, and thus one of the reasons behind the problems from the bursting of that bubble.


Sorry, but you don't know what you're talking about.

Again, the CRA worked fine in the 1980s and 1990s. Besides, it wasn't the pivotal problem behind subprime........capitalistic greed and avarice were.



To: TimF who wrote (459082)2/24/2009 3:57:32 PM
From: combjelly  Read Replies (2) | Respond to of 1574098
 
"For the CRA, the "cave" started to "fill up" right away"

BS.

Historically speaking, the default rate for CRA loans has been slightly lower than the general market. So, in your analogy, CRA loans weren't filling the cave but modestly helping to pump it out.

In addition, the Bush administration weakened the CRA requirement so the absolute numbers of those loans were on the decline over the years where most of the bad loans were written.