Conservative Think Tank Credits Deregulation For Economic Crisis

[applegrove]

Conservative think tank berate franny mae and freddy mac for not giving out enough sub-prime loans in 2000. Toots the horn of financial deregulation. Take that Bloomberg!

http://www.politicususa.com/en/conservative-think-tank-credits-deregulation-for-economic-crisis


Conservative Think Tank Credits Deregulation For Economic Crisis

November 3, 2011

By Ray Medeiros
at Politicus USA

"SNIP..............

The conservatives are masters at creating a problem, then blaming the other guy for the mess. Look at our debt, it was doubled by Ronald Reagan, fixed by Clinton, and then the Clinton surplus was squandered by the Republicans and George W Bush. This is also the case with the Heritage Foundation advocating for the health insurance mandate in the early 1990s and is now the case regarding the CATO Institute’s accusations about the Community Reinvestment Act of 1977.

Back the year 2000, CATO published this white paper regarding the CRA, community reinvestment act, it stated among many things,

“Despite wide acceptance of the claims made by cra’s advocates, those claims are conceptually and observationally unfounded. Economic theory and empirical evidence indicate that the reason for recent growth in lending to low-income neighborhoods is not cra, but the effectiveness of market forces in breaking down the types of financial barriers that were prevalent when cra was enacted”

In reality, deregulation and new technologies have promoted competition and precipitated a great broadening of the credit market. As a result, cra is not necessary to ensure access to credit by all segments of our economy. Moreover, cra’s redundancy is not without significant costs, some of which are associated with a particularly regrettable type of regulatory burden involving the imposition of conflicting demands on banks.

...............SNIP"

[banned from Kos]

1. The CRA was a piddling piece of law - it stopped redlining

and did nothing else.

No bank was ever "forced" to write a loan.

[Lost-in-FL]

2. Nah… you are kidding right? nt

[The Wielding Truth]

3. Ask them. Which regulation did you follow that got you in so much trouble?

Exactly why did that affect your business? Show us your books if you want our money.Make us partners with votes on how you spend our tax money.No problem just be accountable and we will see about those bad regulations.

We won't give you the keys to the ca any more. You keep driving off that cliff.

[applegrove]

4. They were bragging about deregulating the financial market 10 years ago. They were taking

ownership for the deregulations and the environment that made sub-prime loans possible. Now they blame freddie mac and frannie may for it all.

[The Wielding Truth]

5. Exactly. The very thing they want is the reason for the demise.

[applegrove]

6. Any way to contact bloomberg and give him this info?