Comment Re:Unholly Partnership (Score 1) 649
Talk about overrated moderation. This unfounded claim has been used as right-wing propaganda since the first days after the meltdown began. Go back and do some proper research on this. The CRA had nothing to do with the lending meltdown. At most, it was a very minor factor in the whole situation.
What motivated lending companies to make bad loans to completely unqualified people was pure greed, not a government mandate!
Lending companies were being encouraged by extreme demand for more and more loans that would then be packaged and sold into complex investment instruments. Everyone thought that the geniuses in wall street had figured a way to eliminate the risks of this stupid practice, and they kept making good money on the loans they made, regardless of borrower qualifications. In turn, they wanted more, more, and more people to borrow money, because it seemed like an infinite money machine that magically eliminated all risks.
It all came crashing down one day, and we were left holding the bag. All because of greed and lack of proper regulations of the financial sector.
Let me repeat that: the causes of the meltdown were greed and lack of regulations! Not a government mandate!