My RW bro is FREAKING out, blaming subprime on Community Investment Act

[callous taoboy]

His e-mails have turned downright ugly. He keeps harping on the 1977 Community Investment Act for being the culprit behind the subprime meltdown. I have presented to him the views of several economists that refute his position, but he will not let it go.

[MercutioATC]

1. Send him this:

"Private sector loans, not Fannie or Freddie, triggered crisis"


http://www.mcclatchydc.com/251/story/53802.html

[callous taoboy]

9. This was the first thing I sent him.

McClatchy is too liberal was his reply.

[guitar man]

13. then I'd tell him

if all he can do is shoot the messenger rather than objectively look at the message, go ahead and wallow in piss ignorance. I had this exact same discussion with my RW cousin a while back and got the same response. If they don't want to hear something, they don't want to hear it, you'll never change them.

[DS1]

2. If it's so bad, why didn't Reagan repeal it? He had 8 years.

Bush 1 had, Bush 2 had another 8.


Shiiirley it can't be that bad

[AllieB]

3. Most of the subprime loans were made by institutions NOT covered by the Act.

That's an easy link to find. you also may want to send him the latest Tom Tomorrow cartoon:

http://www.salon.com/comics/tomo/2008/10/28/tomo/

[baldguy]

4. Why didn't the meltdown happen in 1977 then?

[HereSince1628]

5. You cannot argue with a conservative personality.

Really. Facts are seen as proof of conspiracy.

Better to simply ask the questions.

Most mortgages are the 30 year. Why would something from 31 years ago finally be killing the subprime market now? Why didn't this happen in 1988 or 1998? Did something happen more recently? Aren't the unregulated derivatives sold by finance companies something recent?

[blueclown]

6. These are the Rush Limbaugh talking points.

Bat them down and tell the truth.

90% of subprime loans were given out by private firms that were not subject to the CRA. In fact, the SEC meeting in 2004 to limit regulations had a much bigger effect on this subprime meltdown than the CRA ever did.

[DemoTex]

7. "A fanatic can't change his mind, and he won't change the subject."

Winston Churchill

You might want to include Churchill's words in your next email response to your brother.

[dccrossman]

8. It's for sanity

He's probably spent some time supporting and arguing for Repugs and their "small govt", "fiscal conservatism". Seeing it blow up in his face is challenging a core part of his world view.

Take a while to adjust. =)

My brother is convinced that Fannie and Freddie are the problem because of something that Clinton must have done.

[TommyO]

10. If it was so bad, why did it take 30 years for it to explode?

[sinkingfeeling]

11. Is he educated? Does he believe anything Newsweek or Businessweek prints?

If yes, then he needs to read these 3 articles:

Community Reinvestment Act had nothing to do with subprime crisis
http://www.businessweek.com/investing/insights/blog/archives/2008/09/community_reinv.html


Minority Borrowers Not the Cause of Sub-prime Mess
http://www.newsweek.com/id/162789

Private Sector Loans, Not Fannie or Freddie, Triggered Crisis
http://www.mcclatchydc.com/251/story/53802.html

[NNN0LHI]

12. Remind him we had a Republican president running this country for 20 of the last 28 years

He may have forgot?

Don