(12-08-2017, 09:18 PM)hb1148 Wrote:

(12-08-2017, 08:12 PM)JagNGeorgia Wrote: Huh??

Republicans were warning Democrats about the pending demise of the housing market. Democrats ignored this warning, and there are videos online that prove it.

The Clinton-era push to lend more to poor people through subprime mortgages via the CRA caused the downfall. The CRA commitments from banks went from couple billion in 1992 to 6.1 trillion in 2008. After being stagnant for 15 years, it increased only after Clinton enforced the CRA rules.

That's an utter myth. The 2008 financial crisis was precipitated by the deregulation of the financial industry by Republican lawmakers when they passed the Gramm-Leach-Bliley Act, which repealed part of the Glass–Steagall Act of 1933 and allowed (among other things) banks to package subprime mortgages as investment instruments and collude with ratings agencies to rate those instruments as "AAA" investments. That lead directly to the downfall of Lehman Brothers which started the panic that ultimately led to the "Great Recession".

You can hurt yourself reaching that hard.

Have you seen the CRA commitment chart? It's a flat line until 1992. The Democrat-led congress, and Clinton, began enforcing banks to adhere to the CRA. The banks almost never loaned to anyone (that was a risk) before 1992, and the amount they began loaning skyrockets starting from 1992 to 2008. 

What you're talking about contributed to the mess. It, however, is not to blame for the crash. The investments into the bad loans didn't cause the crash; it was the trillions upon trillions of dollars worth of bad loans.

You can find videos on YouTube showing reports from as early as 2000 that show Republicans warning Democrats and Democrats accusing Republicans of fear-mongering. So, how is is that we have a correlation of subprime loans to the CRA commitments starting at 1992, but the problem started in 1999 when Republicans were warning Democrats in 2000? It doesn't make sense.

---