Krugman Right as Usual
For those couple of readers of my blog that still insist on the bogus line that, somehow, the economic collapse was caused by liberals forcing banks to make loans to poor people (you know who we mean,) here's a great comment by Paul Krugman. The gist of his remarks:
"The Community Reinvestment Act of 1977 was irrelevant to the subprime boom, which was overwhelmingly driven by loan originators not subject to the Act."
There's plenty in the way of (gasp!) actual facts to back up his position. But then, he is only a Nobel Prize winning economics professor, not Glenn Beck or Michelle Bachmann, so what the hell does he know?
"The Community Reinvestment Act of 1977 was irrelevant to the subprime boom, which was overwhelmingly driven by loan originators not subject to the Act."
There's plenty in the way of (gasp!) actual facts to back up his position. But then, he is only a Nobel Prize winning economics professor, not Glenn Beck or Michelle Bachmann, so what the hell does he know?
Comments
In this case, he is technically correct, but CRA was merely one small tool government progressives in cahoots with community organizers mau mau'd banks into making irresponsible loans.
Also, Fannie and Freddie covering loans (a big government idea) so the originators could walk away just encouraged even more irresponsibility.
Finally, Bush's loose money policy dealt the coup de grace to the whole progressive house of cards.
Again, Krugman is an Enron crapweasel who should be using his education to actually educate and enlighten.
He would do well to repeat Milton Friedman's wise words:
There's no such thing as a free lunch.
Hope that was not another leap of imagination to some sort of nonexistent racial code-word like sometimes happens in these parts. After all, poor white people probably outnumber all African-Americans.
So, what do you think of government employees being paid tens of millions of dollars?
As for the free lunch phase, it was in existence for 40 or so years before Friedman made use of it.
Silverfiddle, Krugman provided facts, and you have nothing but the usual Republican talking points and lying smears.
And as for you, dmark, to quote the great political strategist, professor Chuck Berry, you "don't know much about history," huh?
I think I'll write a post exposing you two for the right wing tools you are. You may be able to get away with your pathetic lies on your side of the aisle, but not here.
You ignore the dollar amount of commitments to the CRA.