On every online comment section and discussion board I've looked at in the last two days, at least a dozen yahoos have claimed one or two of the following:
1. "It's the Dems fault because that stopped S.190 (to reform the regulation of Fannie and Freddie)in 2005."
2. "It's all the fault of poor/black people because the Dems pushed for giving these unqualified bums mortgage loans through the Community Reinvestment Act."
The best response to Number 1 is here:
http://www.dailykos.com/storyonly/2008/9/20/21195/8886/22/605095"S190 was discussed in the Senate Banking Committee on July 28, 2005 with the result, "Ordered to be reported with an amendment in the nature of a substitute favorably", which I believe is Congress speak for, "we don't like this, please go rewrite it and we may reconsider", i.e., the bill died in a Republican controlled committee and never came to the floor of the Senate or back to the Senate Banking Committee for reconsideration. S190 died in committee."
That statement is documented
http://thomas.loc.gov/cgi-bin/bdquery/z?d109:SN00190:@@@P
Also, both the White House and the American Enterprise Institute (neocon heaven) OPPOSED the passage of the House counterpart H.R. 1461, which did pass 331-90.
http://www.aei.org/publications/pubID.22705/pub_detail.aspH.R. 1461: A GSE "Reform" That Is Worse than Current Law
" HR 1461--a bill that was supposed to create a “world class regulator”--is in fact a world class failure. Not only does it fail to improve significantly upon the regulatory authority of the Office of Federal Housing Enterprise Oversight (OFHEO), but it actually increases the opportunities for Fannie and Freddie to exploit their subsidies in order to expand into other areas of residential finance."
http://www.presidency.ucsb.edu/ws/index.php?pid=24851"The Administration has long called for legislation to create a stronger, more effective regulatory regime to improve oversight of Fannie Mae, Freddie Mac, and the Federal Home Loan Banks ("housing government-sponsored enterprises" or "housing GSEs") and appreciates the considerable efforts of Chairman Oxley and Chairman Baker in crafting H.R. 1461. However,
H.R. 1461 fails to include key elements that are essential to protect the safety and soundness of the housing finance system and the broader financial system at large. As a result, the Administration opposes the bill."
Best response to Number 2 is here:
http://www.reuters.com/article/pressRelease/idUS135259+07-Jan-2008+BW20080107Community Reinvestment Act May Have Deterred Risky Mortgage Lending
"NEW YORK--(Business Wire)--A Traiger & Hinckley LLP study of 2006 mortgage loan data suggests
that the Community Reinvestment Act, a federal law that requires banks
to help serve the credit needs of their local communities, including
low- and moderate-income neighborhoods, deterred banks from engaging
in the kinds of risky lending practices that are provoking the
foreclosure crisis.
Compared to other lenders in their communities, banks making loans
in their CRA assessment areas (CRA Banks) were less likely to make a
high cost loan, charged less for the high cost loans they did make,
and were substantially more likely to eschew the secondary market and
retain high cost and other loans in portfolio."
These posters all have gleaned their lies from the National Review, Bloomberg, talk-radio, and John McCain campaign.
Help shut them down!!
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