Added: Jul 30, 2010

From: 69erstud

Duration: 9:59

At 1:00 of the video... talk about some mofo taking a source out of context: Source: http://www.policylink.org/site/c.lkIXLbMNJrE/b.5137443/apps/s/content.asp?ct=6965733 What Is It? The Community Reinvestment Act (CRA) was established by Congress in 1977. The Act requires that deposit-taking financial institutions offer equal access to lending, investment and services to all those in an institution's geographic assessment area-at least three to five miles from each branch. In the case of large banks with many branches, the geographic area may encompass an entire county or even a state. Before the CRA, many bankers excluded low-income neighborhoods and people of color from their lending products, investments, and financial services - a practice known as "redlining". Community activists coined the term when they discovered that the failure of banks to make loans in some low-income neighborhoods was so geographically distinct, that it was easy to draw red lines on maps to delineate the practices. In the 1970s, activists in Chicago and across the country brought strong pressure on banks to lend equitably to all those in their communities. Since its passage, the CRA has been used across the United States to win tens of billions of dollars in new lending, investments, and services for communities. The National Community Reinvestment Coalition tracks more than $1 trillion dollars in community reinvestment pledges nationally. These pledges are explicit investments in equitable development goals, and finance many tools in this toolkit. at 1:05 of the video... more AGAINST the non-sense Source: http://economicsofcontempt.blogspot.com/2008/12/howard-husock-making-late-push-for.html Howard Husock making late push for Dishonest Hack of the Year Posted by Economics of Contempt at 11:08 PM Just 8 days after Fed Governor Randall Kroszner gave a speech completely eviscerating the argument that the Community Reinvestment Act (CRA) had anything to do with the subprime crisis, the NYT decides to publish an op-ed by Howard Husock aruing that the CRA deserves a significant portion of the blame for the subprime crisis. Whichever editor decided to publish this op-ed should be immediately fired for gross incompetence. Randall Kroszner, in a speech on December 3: [T]he findings of a recent analysis of mortgage-related data by Federal Reserve staff...runs counter to the charge that the CRA was at the root of, or otherwise contributed in any substantive way, to the current subprime crisis. ... Only 6 percent of all the higher-priced loans were extended by CRA-covered lenders to lower-income borrowers or neighborhoods in their CRA assessment areas. ... This result undermines the assertion by critics of the potential for a substantial role for the CRA in the subprime crisis. ... We found that loans originated under the NWA program [a portfolio of CRA-covered loans] had a lower delinquency rate than subprime loans. Furthermore, the loans in the NWA affordable lending portfolio had a lower rate of foreclosure than prime loans. The result that the loans in the NWA portfolio performed better than subprime loans again casts doubt on the contention that the CRA has been a significant contributor to the subprime crisis. ... Foreclosure filings have increased at a faster pace in middle- or higher-income areas than in lower-income areas that are the focus of the CRA. Contrary to the assertions of critics, the evidence does not support the view that the CRA contributed in any substantial way to the crisis in the subprime mortgage market.Howard Husock, in tomorrow's NYT: One cannot say with any certainty whether the more important cause of the current housing crisis was affordable-housing mandates or the actions of investment banks and ratings agencies. Also read: https://www.wachovia.com/foundation/v/index.jsp?vgnextoid=7ecafd317804f110VgnVCM100000617d6fa2RCRD&vgnextfmt=default&key_guid=9aa4e6395c0eb110VgnVCM100000ca0d1872RCRD

Channel: Travel

Tags: the  lies  of  what  caused  our  economic  mess 

Rating: ( ratings)    Views: 103    Comments: 20

69erstud Says:

Jul 30, 2010 - It's funny how on 1:45 of video, it condemns fannie mae but not post this picture of it's CEO at time of the article: Yet a picture of his predecessor, Franklin Raines, was shown at 5:52 ALWAYS remember that Fannie Mae is a private entity. Note from wikipedia: Neither Raines nor the Obama campaign had disputed the Post's reporting before the ad. The text in question consisted of one sentence in each article. After McCain's attack ad however, both denied that Raines was or had been a provider of

69erstud Says:

Jul 30, 2010 - ... advice to Obama or the Obama campaign. In later commentary the Washington Post (the original source) described McCain's attempts to connect Obama with Franklin Raines based on their reporting as "a stretch" and said all reporting they did about the matter actually stems from a single conversation a reporter had with Raines in which she recalls Raines said he "had gotten a couple of calls from the Obama campaign". When the reporter queried Raines to the nature of the calls he said, "oh, ...

69erstud Says:

Jul 30, 2010 - general housing, economy issues". Additionally, an email hoax falsely claims Raines was made "Chief Economic Advisor" for the Obama presidential campaign.

69erstud Says:

Jul 30, 2010 - IN ADDITION, at 1:08 of your video, as it states that CRA FORCED Banks to loan... ummm NEWS for you, the CRA didn't force Bear, Stearns and Co. to do anything. READ ON from the ACTUAL article: 997 Corporate and Investment Banking Press Releases October 20, 1997 FIRST UNION CAPITAL MARKETS CORP., BEAR, STEARNS & CO. PRICE SECURITIES OFFERING BACKED BY AFFORDABLE MORTGAGES Unique Transaction To Benefit Underserved Housing Market Source: freerepublic dot corn/focus/f-news/2090118/posts

69erstud Says:

Jul 30, 2010 - 1:56 to 2:00 is a HUGE, HUMONGOUS LIE ... since CRA does not have a provision about loaning via ARM. HERE read until your eyes bleed... Source: Wikipedia search words "Community Reinvestment Act"

69erstud Says:

Jul 30, 2010 - @3:14 of your burning down the house video, for 1 second… JUST ONE SECOND, stated, “Gas Prices Shot Up” The graphs at 3:21 of the video to 3:31 are a farce since there is no continuity regarding the comparisons. upload.wikimedia dot oorg/wikipedia/commons/d/dd/Case-shiller-index-values.jpg NOTE: Up until 1999, the housing price index grew normally. As of year 2000: "The composite and city indices are normalized to have a value of 100 in January 2000."

69erstud Says:

Jul 30, 2010 - By the year 2006, the indices have a value of over 185. Again, the graph shows that it is consistent with ALL of my arguments against the video.

69erstud Says:

Jul 30, 2010 - @3:27 of video … do you even know what that graph means? … it says Subprime collapse … that’s not an indicator for the economy’s collapse … it shouldn’t because those are comparing Subprime loans from year to year where the drop actually is an indicator that the economy actually ALREADY collapsed. Subprime mortgages amounted to $35 billion (5% of total originations) in 1994,[75] 9% in 1996,[76] $160 billion (13%) in 1999… $600 billion (20%) in 2006 = Greed

69erstud Says:

Jul 30, 2010 - @3:58 of video, for 1 second, stated, “Jobs Disappeared” If the oil prices inflated as fast as historical inflation, people would have had more buying power/disposable income and therefore more purchases to fuel the economy. More people would have kept their jobs. If people kept their jobs, their mortgages or rents would have been paid. Again, they knew upon signing that their mortgage will increase…

69erstud Says:

Jul 30, 2010 - for many, they didn’t expect prices of their daily food, toiletries, etc., gas and car maintenance would double or more than double in less than 6 years. I know for a fact that in California, it is not the CRA’s fault for the housing market to collapse

69erstud Says:

Jul 30, 2010 - There are investors in Silicon Valley… millionaire investors here in the US AND from Asia, who used SUB-PRIME lending. NO ONE FORCED them to sign… the BANKS were not forced to lend to them but when the housing bubble was bursting mostly due to California’s economic crisis/unemployment…they bailed. Renter’s of these over valued houses left due to unemployment or had to lower their standard of living by moving to modest apartments…

69erstud Says:

Jul 30, 2010 - part of the reason that apartment rentals rose, the basics of supply and demand. These loans that were unsecured are not from the low and moderate income neighborhoods and definitely not under CRA. The bubble was a major creation of the real estate investors (Builders, Leasers and Bankers) … it was thought to be a “safer” investment in contrast to the stock market’s bubble which burst in 2000 (mostly due to dot-bombs). From late 2000 to 2006 the money that were previously invested in...

69erstud Says:

Jul 30, 2010 - stock markets, were transferred to invest in homes with interest only payments/subprime loans CREATING the real estate bubble, that made your home valuations soar to more than double from it’s price on the year 2000. OH but please spread your ignorance and blame the poor while your Financial CEO’s get million’s of dollars of perks and bonuses (still an ALL industry problem) when their companies loans to investors who defaults. Have some common sense.

69erstud Says:

Jul 30, 2010 - That video is more about racism than it is the economic turmoil. CRA was created in 1977 and revised in 1995, you would think that by 2004 after the housing market would have collapsed by then after 4 years of full cycles with subprime loans but it continued to bubble until mid 2006.

69erstud Says:

Jul 30, 2010 - It’s funny that @ 7:32 of the video, a picture of Obama was used as if much of the responsibility is Obama's…the original video was posted DURING the Bush Administration.

69erstud Says:

Jul 30, 2010 - At 7:54 of the video, if you want to discuss Protection of low income workers from undocumented workers… you better be smart enough to discuss the whole economic process. If you want to put blame that way, billions of dollars are pouring out to other countries because there are NO regulations to outsourcing jobs to countries like India, Ireland, Philippines, etc.

69erstud Says:

Jul 30, 2010 - @8:31 of video.. “And Obama got his wish… lots of affordable mortgages” … how the is this video blaming Obama already, while Bush is STILL in office? It’s funny how the video admonishes the low income AND tells them it’s not their fault. If you want your child to become psychotic or have an inferiority complex, blame them for your inadequacy as a parent but tell them their uncle or neighbor is responsible.

69erstud Says:

Jul 30, 2010 - It doesn’t make sense right? So why the fuck would the video place RESPONSIBILITY on Obama when he wasn’t even in office YET?

69erstud Says:

Jul 30, 2010 - at 6:25 of video... 6:40, the law firm of Miner, Barnhill & Galland did NOT sue Citibank for not issuing enough ARM loans. Obama represented Calvin Roberson in a 1994 (let me spell that out NINETEEN NINETY FOUR) lawsuit against Citibank, charging the bank systematically denied mortgages to African-American applicants and others from minority neighborhoods. And surprise!!! They won! Discrimination STILL exists. The event was before Clinton had expanded the CRA legislation.

Rizky06 Says:

Sep 4, 2010 - The big financial crash was caused by derivatives which is a much bigger market than all of the mortgages issued. America's housing values are the true collateral that backs up the plays made by the shadow banking system and many believe ultimately backs up national debt held by foreign countries.