This has to be talked about mainly for the fact in certain states the housing industry is till in dismay with homes being up-side down and families still going into foreclosures. It also has to be shown that it was the policy’s of President Carter and Clinton that placed the seeds for this economic destruction.
The National Bureau of Economic Research which is highly respected has confirmed beyond a doubt that the Community Reinvestment Act (CRA) which was enacted by President Carter, is directly responsible for the housing market collapsing and destroying the U.S. economy.
There is a myth out there that since the CRA was passed in 1977 by Carter, long before the subprime crisis, it couldn’t have caused the explosion in bad loans, but when it expired in 1997, President Clinton rewrote the regulations to toughen CRA enforcement as part of a crusade to close the “mortgage gap” between blacks and whites.” Banks were required to adopt “flexible lending practices.”
So what did this do as though we don’t know. A large number of these people who have lost their homes had no business owning them in the first place. They were a walking time bomb of not being able to meet their mortgage payment with no money down and their credit check practically ignored.
The following was posted by Robert Moon, published by The Examiner: “-President Bush went to Congress repeatedly for years warning them that Fannie Mae and Freddie Mac were going to destroy the economy (17 times in 2008 alone). Democrats continuously ignored him, shut down his proposals along party lines and continued raiding the institutions for campaign contributions on their way down.
Barney Frank (D) Mass and Chris Dodd (D) Conn, were the main two people responsible for this housing collapse not listening to the warnings of president George W. Bush and other Republicans and Barney Frank as a matter of fact mentioning the fact that the Republicans were making a big deal out of nothing. As we have found out, it was very big, a huge bubble burst that we are still feeling the effects today.