Quote:
Originally Posted by t walgamuth
I fail to understand how the "congress and the president" caused the subprime crash.
Unless you are talking about the de regulation of the lending industry and the massive cutting of expenditures for enforcment of federal banking guidelines.
Tom W
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Here's a portion of an abstract concerning subprime loans. It was another gov do-gooder project.
Community Reinvestment Act ("CRA") as a positive mandate for banks and thrifts to do good by increasing investment in low- and moderate-income ("LMI") neighborhoods. When Congress enacted CRA, it was inconceivable that LMI neighborhoods might eventually receive too much credit in the form of abusive mortgages. However, by the late 1990s, predatory mortgages- exploitative high-cost loans to gullible borrowers-were ravaging the inner cities.