10 minutes ago: Dodd asks Bernanke if the Community Reinvestment Act was the problem

[DuaneBidoux]

for the mortgage mess (you know, that worn out right wing excuse). The loans that have failed were by far and away in loans not covered by the CRA.

Bernanke said only 6% of loans were made by CRA institutions into CRA neighborhoods.

In other words: Most of the mess we are having comes from banks that were NOT federally regulated (as Bernanke says).

[Jennicut]

1. Obvious but even Bernanke had to admit the truth

[On the Road]

8. Why Would He "Admit" It?

He's never taken that position or for that matter been a mouthpiece for right-wing talking points.

[blueclown]

21. Seriously.

Sometimes this populist anger is directed at the wrong people.

[yourguide]

2. did he say 6% of total loans, 6% of subprime loans, or 6% of failing loans? n/t

[DuaneBidoux]

3. He said 6% of the total of troubled loans.

[yourguide]

13. full video but I havent had a chance to go through and look

http://banking.senate.gov/public/index.cfm?FuseAction=Hearings.LiveStream&Hearing_id=1d916c47-3208-4fe8-bd6a-7882ed43f12e

[sixmile]

4. Debunks reich wing talking point

Mentioned that underwriters who fell under CRA guidelines were MORE stringent than others.

[Renew Deal]

5. I heard abut this from some moran just today.

Can't wait to get this clip.

[jpak]

6. K&R and bookmarked

This debunks a major wingnut talking point...

[dcindian]

7. Thumbs up for Dodd.

I wish the question was asked months ago. But I will take this and give a great job to Mr. Dodd.

[DuaneBidoux]

17. Thumbs up for Bernanke, who confirmed it

So often he waffles about stuff like this but I guess since it came from a study by the San Francisco fed he didn't think he could.

[antigop]

9. PLEASE! PLEASE! Post a link to clip if anyone comes across this. n/t

[DuaneBidoux]

18. I just wanted to let you know that someone put up a link above this post

I think that unfortunately it is for the whole testimony though so you'll have to wade through the Dodd parts to find it--but it was a direct exchange between Bernanke and Dodd.

[progressoid]

10. Right wingers simply won't understand this because they...

[PretzelWarrior]

11. I want that clip.

[mzmolly]

12. Uh huh, a 35 year old act is responsible for the

meltdown. :eyes:

Good question on the part of Senator Dodd.

[WinkyDink]

14. What? Poor people did NOT cause the Global Recession?! They DIDN'T loot billions?! Quelle surprise!

[yourguide]

15. Link to full hearing

http://banking.senate.gov/public/index.cfm?FuseAction=Hearings.LiveStream&Hearing_id=1d916c47-3208-4fe8-bd6a-7882ed43f12e

Dont have time to go through it but if someone does I would be very interested in what time in the video that Q & A comes up.

[TayTay]

16. CRA made much better loans that are less likely to default

See two reports from the auditing firm Traiger & Hinckley LLP

http://www.traigerlaw.com/publications/traiger_hinckley_llp_cra_foreclosure_study_1-7-08.pdf">Jan 9, 2008 Report

Summary Conclusions

Our study concludes that CRA Banks were substantially less likely than other lenders
to make the kinds of risky home purchase loans that helped fuel the foreclosure crisis.

Specifically, our analysis shows that:

1. CRA Banks were significantly less likely than other lenders to make a high cost loan;
   
2. The average APR on high cost loans originated by CRA Banks was appreciably lower
   than the average APR on high cost loans originated by other lenders;
   
3. CRA Banks were more than twice as likely as other lenders to retain originated loans in
   their portfolio; and
   
4. Foreclosure rates were lower in MSAs with greater concentrations of bank branches.
   

Go read the http://traigerlaw.com/publications/the_community_reinvestment_act_of_1977-not_guilty_1-26-09.pdf">Jan 26, 2009 report on CRA from Traiger & Hinckley LLP. The conservative charges that "forced" loans to lower-income home buyers caused the foreclosure crisis are simply unfounded by the data.

[avaistheone1]

19. The credit default swaps and derivatives are a much bigger problem.

The government is not even talking about that one. It's too big and bad.

[Hubert H. Hubert]

20. My Econ prof actually trotted out that tired line during class the other day

It really threw me for a loop. I knew he had no freaking idea what he was talking about when he couldn't even remember the name (kept calling it the Community Something-or-other Act). And he didn't just say it was a major cause of the crisis; he said it was the ONLY cause. People like that have no business breathing, let alone teaching...

[blueclown]

22. My economics teacher is the same way.

How do these lame brains get jobs?