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Posted by: hyperbola 9 months, 2 weeks ago
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hyperbola9 months, 2 weeks ago
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FTA:
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.... One of the dirty little secrets behind the housing bubble is the long standing partnership of narcotics trafficking and mortgage fraud and the use of the two in combination to target and destroy minority and poor communities with highly profitable economic warfare. This model is global. It is operating in counties throughout the world as well as in US communities.
Of all the actions that the Federal Reserve took to engineer this housing bubble, the one that I would note is Mr. Greenspan’s efforts to pacify Congresswoman Waters regarding allegations of government sponsored narcotics trafficking at a time when open Congressional hearings would have contributed to an important discussion of the operations engaging in mortgage fraud in minority communities. See, “Financial Coup d’Etat,” Chapter 16, Dillon Read & the Aristocracy of Stock Profits which was written in 2005 and published in April 2006, drawing from an article I first published in May 1999....
Catherine Austin Fitts
Assistant Secretary of Housing - Federal Housing Commissioner, Bush I-
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GLee9 months, 2 weeks ago
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Will13139 months, 2 weeks ago
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well if that all you have to say.. then your uninformed or an idiot...
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here's what the FEDERAL RESERVE HAD TO SAY....
n conclusion, I believe the CRA is an important model for designing incentives that motivate private-sector involvement to help meet community needs. The CRA has, in fact, been helpful in alleviating the financial isolation of many areas of concentrated poverty, but as our report illustrates, there is much more that could be done in these communities. Contrary to the assertions of critics, the evidence does not support the view that the CRA contributed in any substantial way to the crisis in the subprime mortgage market. Today's discussion is an important first step in the process of identifying other initiatives and areas of cooperation between government and the private sector that will effectively address the continuing challenge of poverty in the United States.
well separate this sentence for you study it and learn..
Contrary to the assertions of critics, the evidence does not support the view that the CRA contributed in any substantial way to the crisis in the subprime mortgage market.
http://www.federalreserve.gov/newsevents/speech/kr...
note not from some looney tune blog.. from the FEDERAL RESERVE.. ..-
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GLee9 months, 2 weeks ago
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SoRRY Will but you are an uninformed idiot.......
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"The CRA was passed by the 95th United States Congress and signed into law by President Jimmy Carter in 1977. It was passed as a result of national pressure to address the deteriorating conditions of American cities—particularly lower-income and minority neighborhoods. Community activists, such as Gale Cincotta of the National People's Action in Chicago, had led the national fight to pass, and later led the way to enforce the Act through goverment intervention. Regulators brought the Act in line with President Clinton's strategy to "deal with the problems of the inner city and distressed rural communities". The CRA has served as a catalyst, forcing banks to enter under-served markets that they might otherwise have ignored". A 2002 study exploring the relationship between the CRA and lending looked at as predatory, Kathleen C. Engel and Patricia A. McCoy noted that banks could receive CRA credit by lending or brokering loans in lower-income areas that would be a risk for ordinary lending practices. Most economists, politicians and other commentators have noted that the CRA contributed largely to the 2008 financial crisis by forcing banks to make unsafe loans."
IDIOT!
HEHE......-
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ybdogsct9 months, 2 weeks ago
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GLEE:
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" MOST economists, politicians and other commentators have noted that the CRA contributed largely to the 2008 financial crisis by forcing banks to make unsafe loans. IDIOT!"
It's odd that you would alter the Wikipedia quote to fabricate support for your own argument.
Actually, the Wikipedia entry you PLAGIARIZED says that:
http://en.wikipedia.org/wiki/Community_Reinvestmen...
" SOME economists, politicians and other commentators have charged that the CRA contributed in part to the 2008 financial crisis by encouraging banks to make unsafe loans."
In addition, you conveniently ignore the following sentences, which state:
"The Federal Reserve and the FDIC holds that empirical research has not validated any relationship between the CRA and the 2008 financial crisis.
Others dispute the involvement of the CRA in the subprime crisis. San Francisco Federal Reserve Bank Governor Randall Kroszner has stated that the claim that "the law pushed banking institutions to undertake high-risk mortgage lending" was contrary to their experience, and that no empirical evidence had been presented to support the claim. In a Bank for International Settlements (BIS) working paper, economist Luci Ellis concluded that "there is no evidence that the Community Reinvestment Act was responsible for encouraging the subprime lending boom and subsequent housing bust," relying partly on evidence that the housing bust has been a largely exurban event. Others have also concluded that the CRA did not contribute to the financial crisis, for example, FDIC Chairman Sheila Bair, Comptroller of the Currency John C. Dugan, Tim Westrich of the Center for American Progress, Robert Gordon of the American Prospect, Daniel Gross of Slate, and Aaron Pressman from BusinessWeek.
Some legal and financial experts note that CRA regulated loans tend to be safe and profitable, and that subprime excesses came mainly from institutions not regulated by the CRA. In the February 2008 House hearing, law professor Michael S. Barr, a Treasury Department official under President Clinton, stated that a Federal Reserve survey showed that affected institutions considered CRA loans profitable and not overly risky. He noted that approximately 50% of the subprime loans were made by independent mortgage companies that were not regulated by the CRA, and another 25% to 30% came from only partially CRA regulated bank subsidiaries and affiliates. Barr noted that institutions fully regulated by CRA made "perhaps one in four" sub-prime loans, and that "the worst and most widespread abuses occurred in the institutions with the least federal oversight"."
I don't know if you were trying to be intentionally deceitful, or if you simply thought we wouldn't bother to check your own link.
But maybe you should be a little more careful about accusing others of being "idiots."
"HEHE." -
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Will13139 months, 2 weeks ago
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really ..
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post one creditable link..
I POSTED A LINK FROM THE FEDERAL RESERVE GOVENOR TESTIMONY before congress...
CRA is not mentioned in the top 25 in the time magizine list..
# 1.. Phil Gramm..
#2... Alan Greenspan..
I certainly don't mind being called an IDIOT by someone of your ilk...
in fact tis a badge of honor..-
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lfergie8129 months, 2 weeks ago
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Phil Gramm was chairman of the Senate Banking Committee when he and the Republicans pushed the 1999 deregulation bill through congress that would have overrode a veto by Clinton so a deal was cut.
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It was funny how Greenspan stayed on the job for 20 years and ran like hell when the Titanic hit the iceberg.
The percentage of foreclosures of CRA loans was unchanged for nearly 30 years so it wasn't the problem and it's just red herring talking points to try to divert people from the real cause which was sub-prime loans which the low income didn't get.
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