Comments on: The Lawsuits Begin, Part 2 http://baselinescenario.com/2008/12/14/the-lawsuits-begin-part-2/ What happened to the global economy and what we can do about it Sat, 02 Jun 2012 18:26:14 +0000 hourly 1 http://wordpress.com/ By: James Kwak http://baselinescenario.com/2008/12/14/the-lawsuits-begin-part-2/#comment-2068 Tue, 16 Dec 2008 14:25:00 +0000 http://baselinescenario.com/?p=1592#comment-2068 This is the recurring nonsense about how the CRA caused the crisis, which is just not supported by the facts. See the end of this post for the rebuttals, which are by people who know a lot more about this topic than I do.

The author of the article cited above seems to realize that the problem with blaming the CRA is that the housing bubble was most obvious in non-CRA markets – say, brand-new beachfront condos in Florida. Unable to shake the conservative obsession with poor people, however, he argues that the CRA caused lenders in non-CRA markets to loosen their underwriting standards. I’m not making this up.

]]> By: Rey V http://baselinescenario.com/2008/12/14/the-lawsuits-begin-part-2/#comment-2067 Tue, 16 Dec 2008 14:20:01 +0000 http://baselinescenario.com/?p=1592#comment-2067 AEI has a link on whose at-fault and the fixes. Some of the answers are a bit harsh.

Cause and Effect: Government Policies and the
Financial Crisis By Peter J. Wallison

It can be found here.
http://www.aei.org/publications/filter.all,pubID.29015/pub_detail.asp

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