Carter-Era Housing Policies Helped Spark Sub-Prime Crisis, Expert Says

[Chris_]

Carter-Era Housing Policies Helped Spark Sub-Prime Crisis, Expert Says

(CNSNews.com) - The Community Reinvestment Act (CRA) – a Carter-era policy that requires federal financial supervisory agencies to encourage banks to grant loans to people with low income and little credit – played a major role in sparking the sub-prime mortgage crisis the nation now faces, according to economist Russell Roberts, who spoke at a forum on the issue Thursday at the Hudson Institute.
 
“I see the [current financial] mess as an example of the government’s attempt to engineer housing outcomes,” said Roberts, an economics professor at George Mason University. “People spend other people’s money much less carefully than they spend their own.”
 
“When politicians ran up against budget constraints of deficits, taxation, or borrowing, they regulated,” said Roberts. “By doing so they were able to spend other people’s money, without giving up the projects they already had going.”

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[Peter3_1]

Just noticing that?  Then came Clinton to complete this catastrophy. And out friends and neighbors promise to God to make it WORSE, by voting Obama.

[Ptarmigan]

Interesting and eye opening. Never heard of that law. Makes sense to me.

[Eupher]

Just further evidence of how the gummint's meddling in private affairs has a long-reaching effect.

The Founding Fathers (well, most of 'em) had it right when they wrote the Constitution as to what the gummint can do - and the States do the rest.

10th Amendment anybody?

I know, I know. Everybody's forgotten about that silly, pesky amendment. What better way to bloat the gummint beyond all levels of comprehension?

[Ptarmigan]

Just further evidence of how the gummint's meddling in private affairs has a long-reaching effect.

The Founding Fathers (well, most of 'em) had it right when they wrote the Constitution as to what the gummint can do - and the States do the rest.

10th Amendment anybody?

I know, I know. Everybody's forgotten about that silly, pesky amendment. What better way to bloat the gummint beyond all levels of comprehension?

Dude, someone should challenge it in the courts.

[Eupher]

Challenging a law like that runs contrary to the well-developed sense of entitlement that Mr. & Mrs. Sheeple have grown to expect.

It is politically dangerous, if not suicidal anymore in an Obama-infested America, to actually expect government to stay the hell out of our lives.

We are comfortable with the like of Obama telling us what we need to know, informing us as to which government program is best for us, and otherwise ensuring us that his way is the best way.

That makes it easy for Mr. & Mrs. Sheeple to allow the government to think for them. What could be easier!

Just pay taxes and enjoy the ride!

[Ptarmigan]

Challenging a law like that runs contrary to the well-developed sense of entitlement that Mr. & Mrs. Sheeple have grown to expect.

It is politically dangerous, if not suicidal anymore in an Obama-infested America, to actually expect government to stay the hell out of our lives.

We are comfortable with the like of Obama telling us what we need to know, informing us as to which government program is best for us, and otherwise ensuring us that his way is the best way.

That makes it easy for Mr. & Mrs. Sheeple to allow the government to think for them. What could be easier!

Just pay taxes and enjoy the ride!

I dread a statist America under Obama. Obama is a man with a huge ego. I wonder if he has any pent up rage?

[Eupher]

I dread a statist America under Obama. Obama is a man with a huge ego. I wonder if he has any pent up rage?

Yes, of course he does.

The entire angry black man thingie is what drives his train. We can surely hope he gets derailed in the next few days.