The return of sub-prime lending

[Warren Dew]

This was all CAUSED by the Community Reinvestment Act, which is a bunch of laws and regulations enacted during the Carter administration to stop "redlining," which is where banks simply refused to issue loans in slum communities, and "mortgage discrimination" which is actually banks refusing to loan money to people who have no steady paycheck or credit history.

In my opinion, it's more the Clinton era amendments that caused the problems than the original Carter era regulation. There was real discrimination in the 1970s, which the original Community Reinvestment Act addressed; it was the amendments that resulted in quotas essentially requiring banks to lend money to borrowers who couldn't pay.

[Jason]

This was all CAUSED by the Community Reinvestment Act, which is a bunch of laws and regulations enacted during the Carter administration to stop "redlining," which is where banks simply refused to issue loans in slum communities, and "mortgage discrimination" which is actually banks refusing to loan money to people who have no steady paycheck or credit history.

In my opinion, it's more the Clinton era amendments that caused the problems than the original Carter era regulation. There was real discrimination in the 1970s, which the original Community Reinvestment Act addressed; it was the amendments that resulted in quotas essentially requiring banks to lend money to borrowers who couldn't pay.

Ignoring Seth's spew, as I generally do, it boils down to those damn 'minorities'! Right? I mean fill in the blanks.. you've got your hearts, clubs, diamonds, and.. Yeah. Them! It's their fault!

[Warren Dew]

Ignoring Seth's spew, as I generally do, it boils down to those damn 'minorities'! Right?

It boils down to the government requiring loans to be made without income verification, without down payments, etc.

[Seth]

This was all CAUSED by the Community Reinvestment Act, which is a bunch of laws and regulations enacted during the Carter administration to stop "redlining," which is where banks simply refused to issue loans in slum communities, and "mortgage discrimination" which is actually banks refusing to loan money to people who have no steady paycheck or credit history.

In my opinion, it's more the Clinton era amendments that caused the problems than the original Carter era regulation. There was real discrimination in the 1970s, which the original Community Reinvestment Act addressed; it was the amendments that resulted in quotas essentially requiring banks to lend money to borrowers who couldn't pay.

Ignoring Seth's spew, as I generally do, it boils down to those damn 'minorities'! Right? I mean fill in the blanks.. you've got your hearts, clubs, diamonds, and.. Yeah. Them! It's their fault!

No, it's the fault of individuals who do not have sufficient stable income filing false financial statements and being induced to do so by criminals in the banking and mortgage industry so as to knowingly obtain loans by fraud that they could not possibly repay, and the whole system being set up to facilitate this fraud by the federal government, and Barney Frank and Chris Dodd specifically in the last few years, for reasons of vote-getting and social engineering goals that ignored the realities of economics and finance.

No small number of those fraudsters were white, middle class crooks, but the MOTIVATION for the CRA was alleged "redlining" and minority discrimination, which it wasn't, it was just good business decisions not to lend to people with no jobs and no income.

[Azathoth]

This was all CAUSED by the Community Reinvestment Act, which is a bunch of laws and regulations enacted during the Carter administration to stop "redlining," which is where banks simply refused to issue loans in slum communities, and "mortgage discrimination" which is actually banks refusing to loan money to people who have no steady paycheck or credit history.

In my opinion, it's more the Clinton era amendments that caused the problems than the original Carter era regulation. There was real discrimination in the 1970s, which the original Community Reinvestment Act addressed; it was the amendments that resulted in quotas essentially requiring banks to lend money to borrowers who couldn't pay.

Ignoring Seth's spew, as I generally do, it boils down to those damn 'minorities'! Right? I mean fill in the blanks.. you've got your hearts, clubs, diamonds, and.. Yeah. Them! It's their fault!

It is the fault of politicians playing very dangerous games with the economy to get votes from that particular demographic yes

[Jason]

This was all CAUSED by the Community Reinvestment Act, which is a bunch of laws and regulations enacted during the Carter administration to stop "redlining," which is where banks simply refused to issue loans in slum communities, and "mortgage discrimination" which is actually banks refusing to loan money to people who have no steady paycheck or credit history.

In my opinion, it's more the Clinton era amendments that caused the problems than the original Carter era regulation. There was real discrimination in the 1970s, which the original Community Reinvestment Act addressed; it was the amendments that resulted in quotas essentially requiring banks to lend money to borrowers who couldn't pay.

Ignoring Seth's spew, as I generally do, it boils down to those damn 'minorities'! Right? I mean fill in the blanks.. you've got your hearts, clubs, diamonds, and.. Yeah. Them! It's their fault!

It is the fault of politicians playing very dangerous games with the economy to get votes from that particular demographic yes

Correct sir! You win the intelligent response award.

[Seth]

This was all CAUSED by the Community Reinvestment Act, which is a bunch of laws and regulations enacted during the Carter administration to stop "redlining," which is where banks simply refused to issue loans in slum communities, and "mortgage discrimination" which is actually banks refusing to loan money to people who have no steady paycheck or credit history.

In my opinion, it's more the Clinton era amendments that caused the problems than the original Carter era regulation. There was real discrimination in the 1970s, which the original Community Reinvestment Act addressed; it was the amendments that resulted in quotas essentially requiring banks to lend money to borrowers who couldn't pay.

Ignoring Seth's spew, as I generally do, it boils down to those damn 'minorities'! Right? I mean fill in the blanks.. you've got your hearts, clubs, diamonds, and.. Yeah. Them! It's their fault!

It is the fault of politicians playing very dangerous games with the economy to get votes from that particular demographic yes

Correct sir! You win the intelligent response award.

Er, I believe I said that some time ago, Pord...

[Jason]

Correct sir! You win the intelligent response award.

Er, I believe I said that some time ago, Pord...

Possibly, however, I do tend to ignore your posts which exceed 3 or 4 sentences.

[Seth]

Correct sir! You win the intelligent response award.

Er, I believe I said that some time ago, Pord...

Possibly, however, I do tend to ignore your posts which exceed 3 or 4 sentences.

Not suprised. Children and mental defectives are known for their short attention span and cognitive disabilities.

[Coito ergo sum]

Warren's statement is accurate. Loans were required to be made to people who couldn't pay, and insufficient down payments (or no down payments) were made by people whose incomes, by any rational metric, could not support the debt and whose credit ratings demonstrate that they likely will not pay.

The only reason it worked for a long time is that a self-sustaining cycle started, wherein folks who couldn't pay for their mortgages were able to unload the homes in a year or two, or refinance them every couple of years, and the home's "equity" would increase at a fast enough clip to sustain the transactions.

All it took was the system to pass a point when things slowed down a bit, and the house of cards started falling. Without the artificially high price increases in the housing market, people found themselves unable to unload houses they couldn't afford and as the problem increased, suddenly people realized that the house was worth less than they paid for it. they start letting their homes go, and foreclosures go up. Banks start losing money.

The banks then have to take some action to stem the bleeding red ink, and they send lobbyists to the government to swindle the lawmakers into taking action to help them. Suddenly, helping the banks becomes helping the people. Panic is instilled in lawmakers that they "have to do something" to stop a problem and the myth of "too big to fail" is created. The government helped create a problem by forcing banks to lend money to people who couldn't afford the loans, and the government also allowed financial institutions to get too big in the first place by not enforcing laws against monopolies and trusts. Then the companies have the lawmakers over a barrel, because if the companies fail then people's finances are impacted and the people will blame the politicians and not vote them in.

Solution: Rob the taxpayers of a trillion dollars and hand it over to a bunch of thieving bankers.