CABL Forum - Re: Bailout!!!

Another reason why we should DEMAND that the government caused this and these gready unscroupolous lenders should sink. WE THE PEOPLE should not be burdened with bailing out a crooked dirty Federal reserve that is owned by the very worlds elite who created this mess,the Rothschilds and Rockefellers,the fed reserve is owned by private individuals who through our very own government made this whole mess happen and it was all planned. FDR said, "There are no accidents in politics".

CRA Should Have Done More to Combat Abuses in the Subprime Market
Despite the fact that CRA appears to have increased bank and thrift lending in low- and moderate-income communities, such institutions are not the only ones operating in these areas. In fact, with new and lower-cost sources of funding available from the secondary market through securitization, and with advances in financial technology, subprime lending exploded in the late 1990s, reaching over $600 billion and 20% of all originations by 2005. More than half of subprime loans were made by independent mortgage companies not subject to comprehensive federal supervision; another 30 percent of such originations were made by affiliates of banks or thrifts, which are not subject to routine examination or supervision, and the remaining 20 percent were made by banks and thrifts. Although reasonable people can disagree about how to interpret the evidence, my own judgment is that the worst and most widespread abuses occurred in the institutions with the least federal oversight.
The housing crisis we face today, driven by serious problems in the subprime lending, suggests that our system of home mortgage regulation, including CRA, is seriously deficient. We need to fill what my friend, the late Federal Reserve Board Governor Ned Gramlich aptly termed, “the giant hole in the supervisory safety net.”11 Banks and thrifts are subject to comprehensive federal regulation and supervision; their affiliates far less so; and independent mortgage companies, not at all. Moreover, many market-based systems designed to ensure sound practices in this sector—broker reputational risk, lender oversight of brokers, investor oversight of lenders, rating agency oversight of securitizations, and so on—simply did not work. Conflicts of interest, lax regulation, and “boom times” covered up the extent of the abuses—at least for a while, at least for those not directly affected by abusive practices. But no more.

http://www.house.gov/apps/list/hearing/financialsvcs_dem/barr021308.pdf

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Re: Bailout!!!