Wednesday, February 13, 2013
Welcome to the Real World
The left has spent a lot of effort trying to convince us that its Community Reinvestment Act (CRA) did not cause the housing bubble to burst five years ago. It's a lie.
The CRA did indeed increase the percentage of bad mortgages and when they reached a critical mass and a slight downturn in the economy occurred, the dominoes began to fall. The bursting of the housing bubble intensified our recent recession (the mess President Obama constantly whines about inheriting), from which recession we have not recovered.
Here is a reliable evaluation of the CRA's direct impact on our economy.
It's not really a surprise to most of us on the right. That banks would voluntarily expose themselves to catastrophic loan loses, without government interference and largely race based bullying by community organizers, never made any sense to us.
Once a higher percentage of mandated bad loans became real, the wizards on Wall Street tried to make lemonade from the toxic assets, but only managed to spread them throughout our and some of the rest of the world's economies; so that when too many of the mortgages could not be repaid, the whole system nearly crashed. Then the Obama administration did nearly everything wrong in response and the result is accelerating debt, an extraordinarily weak recovery and the likelihood of very damaging inflation in the near to mid future. Happy, happy, joy, joy. There are few forces more destructive than bad leadership.
Like Kevin Bacon in Animal House's finale, the Dems and the dominant media (same same) try to assure us all is well, but we know differently, and now there is more information to counter the left's disinformation campaign.
Unfortunately, as in The Matrix to which the title of this posting refers, very few seem to care about the real world, and Democratic political power persists, for now, in the dream world they pretend to believe in fervently.
(h/t Wizbang)
The CRA did indeed increase the percentage of bad mortgages and when they reached a critical mass and a slight downturn in the economy occurred, the dominoes began to fall. The bursting of the housing bubble intensified our recent recession (the mess President Obama constantly whines about inheriting), from which recession we have not recovered.
Here is a reliable evaluation of the CRA's direct impact on our economy.
It's not really a surprise to most of us on the right. That banks would voluntarily expose themselves to catastrophic loan loses, without government interference and largely race based bullying by community organizers, never made any sense to us.
Once a higher percentage of mandated bad loans became real, the wizards on Wall Street tried to make lemonade from the toxic assets, but only managed to spread them throughout our and some of the rest of the world's economies; so that when too many of the mortgages could not be repaid, the whole system nearly crashed. Then the Obama administration did nearly everything wrong in response and the result is accelerating debt, an extraordinarily weak recovery and the likelihood of very damaging inflation in the near to mid future. Happy, happy, joy, joy. There are few forces more destructive than bad leadership.
Like Kevin Bacon in Animal House's finale, the Dems and the dominant media (same same) try to assure us all is well, but we know differently, and now there is more information to counter the left's disinformation campaign.
Unfortunately, as in The Matrix to which the title of this posting refers, very few seem to care about the real world, and Democratic political power persists, for now, in the dream world they pretend to believe in fervently.
(h/t Wizbang)
Labels: Community Reinvestment Act
# posted by Roger Fraley @ 8:36 AM 
