Quote:
Originally Posted by Black Diamond Bay
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Classic post hoc ergo propter hoc fallacy.
That guy strains too hard to connect the CRA to the sub-prime crisis when there isn't even a correlation. The CRA was enacted 30 years ago with Clinton making changes in 95. There was a jump in sup-prime lending in the late 90's as a result of CRA but died down around 2001. The Bush admin weakened the CRA yet subprime loans continued to rise.
Studies show the sub-prime loans made under Clinton as a result of the CRA performed quite well and had low default rates. Also lenders subject to the CRA made less subprime loans than private lenders that weren't subject to the regulation.
Notice how there are no lenders crying about the CRA and claiming that it forced them to make 120% loans, neg-am loans, interest-only loans etc.
www.prospect.org
But any idiot can make a video and put it on
Youtube.