Krugman Versus the Wingnuts- Not Really a Fair Fight
Okay, as promised, I would like to comment on an article by Nobel Prize winning Princeton economics professor Paul Krugman, which I linked to, and the right wing replies that my post received. Krugman's post quickly demolished the absurd right wing canard that the real estate collapse was caused by liberals forcing lenders to grant mortgages to unqualified minorities, via the Community Reinvestment Act. Before getting to Krugman's points, let me remind you that this law did no such thing. All it did was to prevent lenders from denying mortgages to fully qualified minority borrowers, because they lived in minority neighborhoods. There was not a shred of evidence at the time that loans to these people were any riskier than ones to white people, and no such evidence has ever been produced. Now, on to Krugman. He bases his argument on the following facts: "The Community Reinvestment Act of 1977 was irrelevant to the subprime boom, which was overwhelmingly driven by loan ...