A new study by the respected National Bureau of Economic Research found that Progressive policies in general, and Democrats specifically were to blame for the subprime mortgage crisis and subsequent economic collapse.
Investor’s Business Daily reported:
Democrats and the media insist the Community Reinvestment Act, the anti-redlining law beefed up by President Clinton, had nothing to do with the subprime mortgage crisis and recession.
But a new study by the respected National Bureau of Economic Research finds, “Yes, it did. We find that adherence to that act led to riskier lending by banks.”
Added NBER: “There is a clear pattern of increased defaults for loans made by these banks in quarters around the (CRA) exam. Moreover, the effects are larger for loans made within CRA tracts,” or predominantly low-income and minority areas.
To satisfy CRA examiners, “flexible” lending by large banks rose an average 5% and those loans defaulted about 15% more often, the 43-page study found.
The strongest link between CRA lending and defaults took place in the runup to the crisis — 2004 to 2006 — when banks rapidly sold CRA mortgages for securitization by Fannie Mae and Freddie Mac and Wall Street.
CRA regulations are at the core of Fannie’s and Freddie’s so-called affordable housing mission. In the early 1990s, a Democrat Congress gave HUD the authority to set and enforce (through fines) CRA-grade loan quotas at Fannie and Freddie.
It passed a law requiring the government-backed agencies to “assist insured depository institutions to meet their obligations under the (CRA).” The goal was to help banks meet lending quotas by buying their CRA loans.
But they had to loosen underwriting standards to do it. And that’s what they did. (article)
While Secretary of HUD under Bill Clinton, Andrew Cuomo publicly admitted that he knew his policies would cause more mortgages to default. Ultimately, his policies led to a massive mortgage crises. Despite playing a major role in the global economic chaos that followed, he remained very popular among the radical left-wing.
He is now Governor of New York.
Today, as the holidays approach, Cuomo wants to collapse something else, your freedom.
He is calling for massive taxation of lawfully owned firearms and/or the forced confiscation of lawfully owned firearms. Gov. Andrew M. Cuomo (D-N.Y.) said Thursday that all options, including confiscation and “mandatory sales to the state,” would be on the table next month when the New York State Legislature debates new gun control measures.
The comments were specifically aimed at what might happen should stricter rules be imposed on “assault” weapons and high-capacity magazines. The governor said he plans on proposing a package of gun legislation in his State of the State address on Jan. 9.
This is the championship view of a real progressive. Cuomo stated “confiscation could be an option”. Mandatory forced sales to the state could be another option.
Or he may allow “Permitting” as an option. In other words, Cuomo may use taxation as a control mechanism on gun ownership enacting a huge crippling tax on all lawfully owned firearms.
Illegal guns owned by the gangbangers and illegal aliens will not be effected.
By using tax levies those who can not afford the new tax will have their lawfully owned firearms confiscated by force. Consider an annual “assault weapons tax of say $2,000” per weapon, what do you think would happen? Law abiding citizens will be disarmed and the heavily armed criminals of New York City will prosper.
Andrew Cuomo ordered affirmative action mortgages for blacks and Latinos. He even called the mortgages “affirmative action.” In this press conference he explicitly stated that banks would be required to “aggressively” give mortgages to black applicants even if they don’t qualify for the mortgage they are applying for.
When asked if his policy would increase foreclosures, he said “I’m sure there will be a higher default rate.” Cuomo knew that a higher default rate would damage the housing industry, the economic, and the blacks families who would be given these affirmative action mortgages they didn’t qualify for.
It was not coincidental that New York State, now governed by Andrew Cuomo was the first state to demand “reciprocity” from other states for their Gay Marriage Laws. A demand which has now pushed same-sex marriage on to the Supreme Court.
It was not coincidence that New York State’s Andrew Cuomo was Housing and Urban Development Director when the mortgage crisis policies destroyed our economy.
And it is not coincidental today for New York State’s Andrew Cuomo to implement the Obama test policies that will undermine the basic rights afforded under the 2nd amendment.