Made in China
In what is sure to turn into one of America’s greatest “D’Oh!” moments, the neocon men and women now claim to have the answer to America’s latest economic problem. And really, what are the chances that this explanation will be anywhere near as fucked up, or even more so, than the ones used to justify the adoption of the more onerous bits of the Patriot Act and the launching of a war against Iraq in response to Al Quaeda’s attack against America. I mean, yeah, it could be, but then, maybe not. Let’s see.
Well, the latest explanation for this mess is the CRA – the Community Reinvestment Act of 1977, which
“Wait. What? 19fucking77!?”
which was “intended to encourage depository institutions to help meet the credit needs of the communities in which they operate, including low- and moderate-income neighborhoods, consistent with safe and sound operations,” as stated on Huffington Post.
So what happened is that all these libruls and ‘teh Blacks’ decided to wait for America’s mortgage industry to advance its financial engineering capabilities to facilitate the development of a wide-ranging derivatives market serving the origination and tranching of sub-prime debt, with the help of those librul institutions Fannie Mae and Freddie Mac. F’ing devious bastards. I mean, it would be one thing if naked greed run amok had anything, anything at all to do with this mess, but come on! It just doesn’t! And the sooner you libruls admit it, the sooner you’ll be on the road to bending over, grabbing your ankles recovery.
Really! You people and your “facts!”
Just as the neocon bastards were getting up to speed on their journey to economic transcendence, HuffPo reports that some librul by the name of Yellen, who also happens to be President and CEO of the Federal Reserve Bank of San Francisco, (San Francisco, people!) pointed out some info foreign to the neocon policy of creating one’s own reality: Most of the loans made by depository institutions examined under the CRA have not been higher-priced loans, and studies have shown that the CRA has increased the volume of responsible lending to low- and moderate-income households.
What really burns, chucks salt in the wound, if you will, is this Michael Barr “Law Professor” guy at the University of Michigan (read: elitist), who also happens to be a specialist in banking and finance law. Before going any further, I already know this “Professor” is so steeped in the real reality that he is not even capable of creating the type of alternate reality required to be a neocon in good standing, but let’s just play their game anyway.
Professor Barr thinks it would be “‘odd’ if a 30-year old law suddenly caused an explosion in bad sub prime loans from 2002-2007… Sub prime mortgages made mostly by brokers and lenders and securitized by investments banks — institutions not covered by CRA.” Whatever, egghead!