I am not interested in helping you sell newspapers, but every now and then when the facts are so misrepresented, someone has to take action.
"Insanity of the Bailout" presents one very right-wing view of the Community Reinvestment Act, which was passed over 25 years ago. There is another side, and I have some time on my hands, so here it goes.
In my research, Michael Barr, from the University of Michigan School of Law, with emphasis on financial services, explains that Community Reinvestment Act approved loans increased employment and added to the overall economy of the low-income areas. The fact is, Gary, the problem is with companies that are not subject to CRA regulations. You cited them, many of these Ditech type groups were in it for the big bucks (referred to as predatory lenders), and my guess is some were Democrats and Republicans.
In further research, Ellen Seidman, who holds a law degree from Georgetown, along with an MBA from George Washington University, explains that CRA regulations were loosened in 2001 and 2005. I will let you figure out who was president and who controlled Congress during this time.
One other quote from Janet Yellen, president and CEO of the Federal Reserve Bank of San Francisco, states the following, "Most of the loans made by depository institutions examined under the CRA have not been higher-priced loans, and studies have shown that the CRA has increased volume and responsible lending to low- and moderate-income households."
You see, Gary, giving the lower and middle class a shot at the American dream was not a mistake. The lack of regulations over greedy people is the mistake. You can feed your line of partisan politics and amp up the right wing, if you wish. Both parties can take their share of the blame for this current financial crisis.
This is no time for partisan finger pointing. It is time for bi-partisan agreement. You and your fellow yellow journalist have often used the freedom of the press as a weapon at what was once a good local newspaper. You were right in one statement the part about "a dumb Hoosier newspaper guy."
