Captain Ramen
2009-02-18 14:23:22
CRA regulated loans had virtually nothing to do with the current crisis.
A few months ago when the wheels were coming off the economy my wife and I decided to apply for a loan at the bank (Wells Fargo). The guy explained to me that even though WF made less risky choices than some other banks, they still had a policy of fulfilling racial quotas for loans.
Can you posit a plausible explanation for this (other than that the lender was lying, give me a break). I can. CRA or no, the banks were politically pressured by Communitay Activists into making loans they would not have otherwise made (also known as a ‘shitty investment’). And thus the mess we are in today.
