Other views




3 Responses to “Other views”

  1. urstupidnourstupid Says:

    “Laws passed by Congress such as the Community Reinvestment Act required banks to make loans to previously underserved segments of their communities, thus forcing banks to lend to people who normally would be rejected as bad credit risks.”

    I didn’t know this until last week. I thought they were taking the risk on by themselves. How can the gov’t force a company to take risk that it might not otherwise take? Were those risky mortgages insured? I think R.Paul is right in that the gov’t just can’t help itself–but I still think someone has to be an overseer—a referee.

  2. urstupidnourstupid Says:

    There were a lot of different groups involved in this. Both Clinton and Bush facilitated this through their encouragement of homeownership and the Community Reinvestment Act. Fannie Mae and Freddie Mac put these programs together and along with tons of money from around the world getting involved in mortgage backed securities, we have this bubble.

    I’m not agreeing with R. Paul either, but I like to hear his take on things.

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