Tag Archive: Government policies and the subprime mortgage crisis

I told you so…

Well, I am going to revel in the “I told you so moment”, but yet another study asking the question”Did the Community Reinvestment Act (CRA) Lead to Risky Lending?“, reports that:

Yes, it did. We use exogenous variation in banks’ incentives to conform to the standards of the Community Reinvestment Act (CRA) around regulatory exam dates to trace out the effect of the CRA on lending activity. Our empirical strategy compares lending behavior

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I told you we where going to get it even worse…

And it looks like the social engineers do not plan to disappoint. Remember when I pointed out that the same politicians that created the environment that caused the housing collapse demanding to be the ones to fix the evil lenders was certainly not fixing anything and likely to make it worse? Well, I hate to be right on this, but I am:

Just days before Christmas, the Obama administration gave Bank of America a

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Back to the Well

Just remember: according to the likes of Paul Krugman, Fannnie and Freddie had nothing to do with the financial crisis:

Mortgage finance giant Fannie Mae said it would ask for an additional $5.1 billion from taxpayers as a weaker housing market causes continued losses on loans made prior to 2009.

Since the firm was seized by the U.S. Treasury in 2008, it has needed about $104 billion in government capital injections, although it has

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Ain’t that a bitch?

Guess who so far has ended up being the biggest beneficiary of the Dodd-Frank financial regulation law? For those of you not familiar with Dodd and Frank, here is some background. Chris Dodd was a senator from my state, Connecticut, and one of the instrumental people behind the previous laws and government push to force lending to high risk people in his political career, ending up as the banking committee chairman (better to rob us … Read more