You are quite right.<quoted text>
You wrote, AGAIN : "Oh, the Housing Mortgage crisis and the subsequent bank failure were caused by Carters Urban Reinvestment Act of 1977 and Clinton's acts that made it real easy to sue banks who turned down people who applied for those mortgages. Banks never would have made Zero-down, Sub-prime loans unless they were forced to."
I've debunked that at least five times in the last 3 months, and you never ever respond. What you do is come back with it every now and then, as if it had never surfaced. Carter was 35 years ago, and it worked fine until GWB and Greenspan came along. When people burn the red lights and have accidents, do you blame the traffic lights?
Banks were forced? Are you mad? Forced to accept to lend money to overvalued house owners without ascertaining if they even had a job, what they earned when they did and no credit check? THAT's what Carter and Clinton had in mind? As I said, it worked fine until GWB came along.
Right meaning correct, not far rightwing.
It Was the Banks / by James K. Galbraith
November 5, 2010 / http://tinyurl.com/2g9d2te
The original sin of Obama's presidency was to assign economic policy to a closed circle of bank-friendly economists and Bush carryovers. Larry Summers. Timothy Geithner. Ben Bernanke. These men had no personal commitment to the goal of an early recovery, no stake in the Democratic Party, no interest in the larger success of Barack Obama. Their primary goal, instead, was and remains to protect their own past decisions and their own professional futures.
But one cannot defend the actions of Team Obama on taking office. Law, policy and politics all pointed in one direction: turn the systemically dangerous banks over to Sheila Bair and the Federal Deposit Insurance Corporation. Insure the depositors, replace the management, fire the lobbyists, audit the books, prosecute the frauds, and restructure and downsize the institutions. The financial system would have been cleaned up. And the big bankers would have been beaten as a political force.
Team Obama did none of these things. Instead they announced "stress tests," plainly designed so as to obscure the banks' true condition. They pressured the Federal Accounting Standards Board to permit the banks to ignore the market value of their toxic assets. Management stayed in place. They prosecuted no one. The Fed cut the cost of funds to zero. The President justified all this by repeating, many times, that the goal of policy was "to get credit flowing again." / http://www.commondreams.org/view/2010/11/05-1...