[Vision2020] Don't Believe Right-Wing Propaganda on the CommunityReinvestment Act

[nickgier at roadrunner.com]

Hi Roger,

Don't you think that calling reports from the Federal Reserve, bastion of libertarian thinkers that I would expect you to admire, BS is rather extreme?  I will stick with their conclusions that the CRA was not a major player in the sub-prime mortgage.  The main reason for the current world financial crisis was too many libertarians and radical free marketeers giving advice and running things, even within the Clinton administration.

As far as criticism of Obamba is concerned, here is where I think he is wrong: death penalty for child killers and inviting Rick Warren to the Inauguration and risking what happened, to wit: he led the nation in the Lord's Prayer!!  I also did not support his vote on surveilance nor did I like the fact that job discrimination was not part of his executive order about faith-based initiative.  Finally, although I could probably come up with more, I do not support his decision to send more troops to Afghanistan.  The Afghanis are fed up with the president we gave them and they don't want any more civilian deaths, up 40 percent this past year, primarily do to U.S. bombing and missile strikes.

Thanks for the dialogue,

Nick

Nick
---- lfalen <lfalen at turbonet.com> wrote: 
> This is BS. The CRA was not the only problem, but it sure was a contributor. I am not an economist, but I would suggest that you read Thomas Sowell and Walter Williams.
> Roger
> -----Original message-----
> From: nickgier at roadrunner.com
> Date: Thu, 12 Feb 2009 12:48:48 -0800
> To: vision2020 at moscow.com
> Subject: [Vision2020] Don't Believe Right-Wing Propaganda on the CommunityReinvestment Act
> 
> > Greetings:
> > 
> > Roger warned me to be balanced on torture, but he doesn't mind being totally out of line with regard to the Community Reinvestment Act (CRA).  Below are a few excerpts from a recent Federal Reserve report.  The entire report can be found at www.federalreserve.gov/newsevents/speech/kroszner20081203a.htm  
> > 
> > "Recently, Federal Reserve staff has undertaken more specific analysis focusing on the potential relationship between the CRA and the current subprime crisis. This analysis was performed for the purpose of assessing claims that the CRA was a principal cause of the current mortgage market difficulties. For this analysis, the staff examined lending activity covering the period that corresponds to the height of the subprime boom.
> > 
> > The research focused on two basic questions. First, we asked what share of originations for subprime loans is related to the CRA. The potential role of the CRA in the subprime crisis could either be large or small, depending on the answer to this question. We found that the loans that are the focus of the CRA represent a very small portion of the subprime lending market, casting considerable doubt on the potential contribution that the law could have made to the subprime mortgage crisis."
> > 
> > Second, we asked how CRA-related subprime loans performed relative to other loans. Once again, the potential role of the CRA could be large or small, depending on the answer to this question. We found that delinquency rates were high in all neighborhood income groups, and that CRA-related subprime loans performed in a comparable manner to other subprime loans; as such, differences in performance between CRA-related subprime lending and other subprime lending cannot lie at the root of recent market turmoil. 
> > 
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