Desroko on 29 September 2008
And since our OP brought up the CRA (not by that name - he doesn't know whatc the fuck he's talking about, so it stands to reason that he doesn't know the name of applicable law) I thought i'd squash that now.
The CRA did not cause the crisis.
First, it was passed in 19fucking77. Yeah, yeah, I know. It was biding its time.
Second, most subprime loans were not made under CRA. Perhaps 25% were, probably less.
Third, institutions not covered by the CRA were over twice as likely to give out subprime loans, and at higher interest rates.
Fourth, subprime loans themselves did not cause this. Selling these mortgages as securities did. That's a practice that exploded during this decade.
