[Guest post by DRJ]
Doug Ross has a wealth of charts demonstrating the tragic results of the Community Reinvestment Act. It’s interesting and easy to follow, and he concludes with this paragraph:
“All that said, these factors pale in comparison to the underlying instigator: a changed policy within the Clinton administration. Andrew Cuomo’s HUD and Janet Reno’s Justice Department threatened banks with a variety of sanctions unless they loosened underwriting standards. Their aim: to hit certain thresholds for loans to the urban poor. Securitization, leverage and poor ratings were all built upon the underlying subprime rot caused by the Clinton administration’s egregious experiments.”
I understand the urge to give money and benefits away but, at some point, politicians in every Party must accept this simple fact: People and societies succeed when they earn what they have, not when it’s given to them.