What would you do, today, if the dynamic duo of Bernake and Paulson came up to you and said that, for the common good of society and the better welfare of lower income America, they would really like for you to do your best to increase lending to those on the bottom tiers of the tax bracket? To expand the American dream to all peoples, regardless of age, sex, race, religion, or ability to repay.
I know what I'd do.
[Key up the Batman music, please.]
Pow!
Smack!
Yowzers!
Except this time...the dynamic duo takes it on the chin.
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Community Reinvestment Act is in my top 5 of worst legislation ever passed in this country. I doubt you will find a true banker anywhere that likes it or that would agree with your scenario, which is in essence the CRA.
ReplyDeleteYou have a top 5? What are the other 4? I'm not sure I could name that many pieces of legislation...Sarbanes-Oxley...McCain-Feingold...that's about all I got.
ReplyDeletePatriot Act...can't forget about Big Brother!
ReplyDeleteI am a little late to this party, however your dynamic duo was beat to the punch about two terms ago. It began in earnest (have you ever met a person named earnie?)under brother Bill Clinton and has contributed to the mortgage meltdown that we are in right now. It worked as long as it was small in scope and did not extend to everyone that was not a minority.
ReplyDeletehowever, once it spread to the common population, interest only housing, no doc loans, no down payment, etc. it blew up in huge proportions. Therefore it got real ugly in the market once loan interest rates started changing.