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"Community Reinvestment Acts". This is what caused the nightmare we're in today.
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Well THAT could be debated as it relates to the "nightmare" were in today! There is no one single cause, but the sup prime loan factor plays only a small part. Factor in Bush's THREE tax cuts while in office. One of which ranks #3 as the LARGEST tax cut EVER! Cost projections were a TRILLION dollars lost over a 10 year span starting in 2003. 2003? That's when the GOP was in full command! Were starting to see the impact of that massive cut in taxes.
Banks couldn't make loans fast enough, they didn't need any "pressure" from anyone to do it. They were MORE THAN GLAD to start handing out money as fast as they could. Wall St was buying the up the loans like a kid in a candy store. This was a systematic wide failure involving a large number of factors.
The problem with banks being able to make loans NOW largely fall's on the FDIC. Banks are failing like crazy, the regulations are so tight there is a mountain of paper work to wade through to get a loan right now. Only the VERY BEST qualified are even considered. The pressure to make "sub prime" loans again pales in comparison to the problem of making ANY loans to ANYBODY right now. It's a dual problem. Obama cannot just tell the FDIC to lighten up, it aint that easy. The banks can't lower their standards because the FDIC is on their butt. Something gotta give, sub prime loans are the least of worries at this point.