JM>> BK>  Well... no. This credit crunch arose from the wealthy getting
JM>> BK>  regulations taken off their wealth redistribution schemes. From
JM>> BK>  the working people to them.


JM>>Read the following and explain to me how The Community Reinvestment
JM>>Act of '77 under Carter, and the The Community Reinvestment Act of
JM>>1995, didn't have something to do with the current problem.

JM>>Politicians and pundits have differing opinions about the cause of
JM>>the credit crisis now afflicting the American economy. Everything
JM>>from deregulation to "Wall Street greed" has been pointed to for
JM>>blame. But the Community Reinvestment Act of 1995 may be the real
JM>>culprit.

 The CRA of 1977 only required banks to make loans in areas where
 they accepted deposits. IOW, to loan throughout their business
 area. Nothing in that act required banks to compromise on
 quality of loans. Redlining was refusing to loan in certain
 areas, even to people who would qualify anywhere else in the
 city.

 The CRA of 1995 did not open the floodgates. Bush cut the
 restrictions of the CRA in 2003, which is where you will likely
 find this starting.

 The CRA of 1995 still did not require banks to drop the actual
 requirement that someone be able to pay the loan.

 That part came about due to the mortgage brokers and
 non-standard loan makers. They were not governed by the CRA, and
 they didn't have to worry about whether the buyer could make the
 payments, they sold the loan.

 Some didn't even much want the buyer to make the payments. We
 had one of those here in the Toldeo area. He would sell a house
 to a low qualified buyer. The buyer would make the payments for
 a few years, but when there was any difficulty at all the
 payments would stop, and the broker would take the house back.
 He advertised for infestors, and offered a very good return on
 investment. Until the govt found a few illegalities in his
 operation and put him out of business. I believe it was when the
 economy went down enough he started losing a lot of the buyers,
 and could not resell the homes. So, he started cooking the
 books.

 JB> The liberals killed the goose that was laying the golden
 JB> eggs and now they plan to eat it.

 Conservatives are killing the goose that laid the golden eggs.
 It was the working class who built this country, and the working
 class is being pushed down into the lower class. When working
 hard does not pay off, when the ROI for advanced education isn't
 enough to pay off the bills, there is no longer much reason to
 invest in education or to work hard.

 JB> I often wonder how well
 JB> their robin hood theory of economic redistribution works
 JB> once they've wiped out the rich ?

 Probably quite well. The rich today are not contributing a whole
 lot to the US economy, at least to the working class. Few mom
 and pop machine shops are moving go China. Nor are mom and pop
 stores or service companies. They are being put out of business
 by those who are importing from China though.

 See the tagline.

BOB KLAHN bob.klahn{at}sev.org   http://home.toltbbs.com/bobklahn

... It would be better for mankind... that the rich be tossed into the sea. A.C
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