Probably. (As Napoleon is said to have opined, “Never attribute to malice that which can be adequately explained by stupidity.)
In the last few weeks, Congress has once again validated two aphorisms:
The eight most dreaded words in the English language are, “I’m from the government; I’m here to help.”
and
“Suppose you were an idiot. And suppose you were a member of Congress. But I repeat myself.”- Mark Twain
(Perhaps I should add another Twainism to the list of aphorisms Congress has recently validated: “There is no native criminal class except Congress.”)
Anywho…
The Community Reinvestment Act of 1977 that was signed into Law by Dhimmi Kahtah had ostensibly good intentions: allow folks who were being redlined (supposedly because of race but actually because they were BAD RISKS) to obtain mortgages for homes. Eventually, this led to
Federal Housing Enterprises Financial Safety and Soundness Act of 1992, passed during a lame duck Repugnican’t presidency by a Dhimmicrappic Congress, ” …required the Federal National Mortgage Association, commonly known as Fannie Mae, and the Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac, to devote a percentage of their lending to support affordable housing. This in part, contributed to increased Fannie Mae and Freddie Mac pooling and selling of such loans as securities , (i.e. securitization), and expanded the secondary market for those loans.”*
In part. The 1992 act required “a percentage” of Freddie/Fannie lending to support so-called “affordable housing” but it was in the hands of the Clintoon Administration that the practices accelerating the downfall of mortgage lenders reeally took off. Contra Bubba’s recent disclaimers, “In early 1993 President Clinton proposed new regulations for the CRA which would increase access to mortgage credit for inner city and distressed rural communities.[7] The new rules went into effect on January 31, 1995… “*
And so it goes.
More recently,
“In 2002 there was an inter-agency review of the effectiveness of the 1995 regulatory changes to the Community Reinvestment Act and new proposals were considered. The Federal Deposit Insurance Corporation (FDIC), the Board of Governors of the Federal Reserve System, and the Office of the Controller of the Currency put new regulations into effect September of 2005. The regulations were opposed by a contingent of Democrats because the action ‘undercuts the statutory purpose of the Act for institutions to meet the needs of low and moderate-income persons and communities by OTS.'”*
So, Dhimmis conspired to leave the CRA free to wreak havoc on our financial system by appealing to two base traits shared by many humans: risk avoidance (after all, don’t make those loans to people who might default and you KNOW the Feds are gonna squeeze your privates for “discrimination” or some such bullshit) and greed (“If I have to make these crappy loans, I might as well get as much as I can out of ’em before they go toxic”).
Let me leave you with this video. Watch the whole thing. Yes, the whole thing. Get a cuppa joe or two to help you sit still that long if you’re AADHD or whatever, but WATCH IT!
Now, go watch this one, too.
Do note, America’s Third World County isn’t participating in the CRA-Freddie-Fannie-Wall Street kerfuffle. Sure folks elsewhere are losing their shirts, but around here, the banks are solid (don’t ask about St Louis or KC, though–those places on on another planet far, far removed from America’s Third World County), business and life goes on.
NOTE: I did use Wikipedia for the citations, despite its notoriously uneven content. The key to using Wikipedia wisely is filtering. One must learn a great deal from elsewhere about a subject so that filtering out the B.S. and outright stupidity that frequently creeps into Wikipedia articles–Jerry Pournelle has given up on correcting misstatements of verifiable fact in the biographical Wikipedia article on himself, for example–becomes simply an exercise in doing ones own homework. When, as here, I find a Wikipedia article worth citing because of accuracy and concise treatment, I’ll use it. But that doesn’t happen all that often.
Trackposted to Diary of the Mad Pigeon, , Faultline USA, Woman Honor Thyself, McCain Blogs, The World According to Carl, Shadowscope, Pirate’s Cove, The Pink Flamingo, Leaning Straight Up, Cao’s Blog, and Conservative Cat, thanks to Linkfest Haven Deluxe.