The Communtiy REinvestment Act never forced any bank to make a subprime loan

[JohnWxy]

Conservatives push the fantasy that the Community Reinvestment Act caused the Credit Collapse by forcing lenders to make sub-prime loans to people incapable of paying them back. The only problem is it isn't true.


http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=109x35162#36731

[lxlxlxl]

1. The knee jerk reactions - blame the poor first, hate arabs, blame china

It has gotten really scary how predictable most rightleaning responses to crises have become. I tried to point this out at the end of last year, when it turned my stomach that know-nothings/dont-cares responded to something as complicated and interconnected as the economic crises was the fault of a handful of homeowners, ninja loans, acorn, whatever.

This is a handy quote to have on hand for republicans that think 'helping poor people' is the problem:

"Today's global crisis -- a loss on paper of more than $50 trillion in stocks, real estate, commodities and operational earnings within 15 months -- cannot be explained only by the default on a meager 7% of subprime mortgages (worth probably no more than $1 trillion) that triggered it."
http://online.wsj.com/article/SB123793811398132049-email.html