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

To: FJB who wrote (754465)	11/25/2013 8:36:24 AM
From: joseffy	Respond to of 1576855

Few serious economists doubt that the the mortgage market debacle and the economic collapse of 2008 were caused by the deliberate weakening of underwriting standards carried out in the name of ending discrimination. Leftists played both sides during the saga. They called banks racist and demanded more subprime lending for minorities and then when the loans went bad called the banks racist for supposedly targeting on minority borrowers. Through the magic of dysphemism, the once sought after subprime lending was transformed into “predatory lending.” Activist groups were encouraged to agitate by the Carter-era Community Reinvestment Act, which enshrined in law a kind of lending protection racket. Banking regulators who had come under the influence of groups like ACORN had the power to make trouble for banks that failed to lend enough money to borrowers in so-called underserved communities. Banks that paid enough — whatever that means — got left alone, but banks that didn’t, got their legs broken. The shaking down of lenders intensified when then-Treasury Secretary Robert Rubin presided over the Clinton administration’s effort to put the CRA on steroids. Banks began to make risky subprime loans and Fannie Mae and Freddie Mac aggregated them for sale in the secondary market as mortgage-backed securities. These practices made it easier for banks to give in to the demands of ACORN and other groups to originate more and more doomed mortgages because they knew they could offload their high-risk debt on quasi-governmental suckers Fannie and Freddie, which were under intense political pressure to service the subprime market. Like all statist true believers, Janet Yellen, the dismal central banker who is well on her way to becoming the next Federal Reserve chairman, is in denial. Yellen refuses to admit that the crazy policies that left-wingers and crony capitalists support are turning America into Greece. This Keynesian wrecker bemoans the “tendency to conflate the current problems in the subprime market with CRA-motivated lending.” Even now leftist groups such as Neighborhood Assistance Corp. of America (NACA), National Council of La Raza, Greenlining Institute, Jesse Jackson’s RainbowPUSH Coalition and ACORN’s successor groups brag that they forced banks to underwrite trillions upon trillions of dollars worth of bad loans solely in pursuit of redistributive so-called social justice. Left-wing pressure groups threatened nasty public relations campaigns against lenders that refused to kneel before their radical economic agenda. With the new cash boost they’re likely to soon receive, they’ll rage against lenders again, effectively rewarded for their antisocial agitation aimed at bringing down the American capitalist system. ACORN Wannabes May Get $4 Billion FrontPage Magazine » FrontPage by Matthew Vadum