Krugman on the Community Reinvestment Act

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As usual, wild eyed Paul Krugman is grasping at straws in defense of his preferred heavy handed government controlled far past voodoo style of economics.

Yes, yes, we all know that Krugman is a “Nobel Prize” winner. But so is Barack (I might do something important someday) Obama, Jimmy (The wholly worthless one) Carter, Al (I fudge graphs and time lines together, to completely confuse people with nonsense) Gore, and Le Duc (I'd rather imprison and kill people than have breakfast any day) Tho, and so did both of the psychiatric butcher goons that perfected the savage practice of severing brain components surgically, that today we call the lobotomy.

That list of misfits above often makes me wonder if there isn't some hidden connection between the last two “Nobel Prize winners” I mentioned (the savage butcher goons) and the others farther up my list?!

Regardless, Krugman and everyone else with long political and economic memories know that prior to the Carter era Community Reinvestment Act of 1977 there was no such thing as a “sub-prime loan” and that those first CRA inspired/created loans were the opening of the sub-prime loan floodgates, once that loan package model escaped the CRA purview, and began to be offered to the general public.

That's an “Inconvenient Truth” that Krugman and all his bug eyed Lefty pals don't want the general public to know, because they all know the backlash would go off on Left leaning political hacks like dynamite under their collective (pun intended) political ~seats~.

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[...] Jun. 6th, 2010 at 5:55 AM 1. The Community Reinvestment Act of 1977 was irrelevant to the subprime boom, which was overwhelmingly driven by loan originators not subject to the Act. 2. The housing bubble reached its point of maximum inflation in the middle years of the naughties.3. During those same years, Fannie and Freddie were sidelined by Congressional pressure, and sawSource:http://washingtonindependent.com/86407/krugman-on-the-community-reinvestment-act [...]

nice post, ur doing a great job.!!!

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Except, not to put to fine a point on it, subprime loans pre-date the CRA. Cracking down on predatory lending was part of the purpose of the CRA. You're blaming it for causing a problem it prevented until deregulation gutted it.

You don't refute a single one of Krugman's points. Your argument is that someone you ideologically disagree with has won a similar prize as other people you don't like. If you're going to argue that a Nobel Prize actually reduces the winners' credibility, good luck with that.

What conservatives refuse to accept is the obvious: the mortgage bubble and financial crises were caused by deregulation. The era of stricter regulation was also the country's greatest era of prosperity and financial stability. We had recurring crises before regulation, none during regulation, and recurring crises after deregulation. That's just the timeline. There's no arguing with that.

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[...] Krugman on the Community Reinvestment Act « The Washington Independent [...]

[...] Krugman on the Community Reinvestment Act « The Washington Independent [...]

[...] Krugman on the Community Reinvestment Act « The Washington Independent [...]

[...] Krugman upon a Community Reinvestment Act « The Washington Independent [...]

[...] Krugman on the Community Reinvestment Act « The Washington Independent [...]

[...] Krugman on the Community Reinvestment Act « The Washington Independent [...]

[...] Krugman on the Community Reinvestment Act « The Washington Independent [...]

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