![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
(no subject)
Sep. 29th, 2008 01:19 amЧеткое изложение причин фин. кризиса в США
The 'bailout' may avert an economic (not just financial) disaster for the time being, but it does not address the underlying problem, which is that America's financial institutions are compelled BY LAW to provide credit in 'poorer neighbourhoods'. Ever since the Community Reinvestment Act of 1977 ( introduced under Carter, made even more insane by Clinton, and fiercely protected ever since by a heavily-lobbied Congress) loans and mortgages have been granted for socio-political reasons, not commercial ones. Applebaum follows the herd and blames it vaguely on 'Wall Street', but this was never Wall Street's idea. The original crime was a political one. The financiers protected themselves by selling the risky loans they were required to make to someone dumber than themselves (i.e. Democrat-run GSEs like Fannie Mae), and since that was profitable, they did more of it. So we ended up with pyramid-selling of bad debt.
There is nothing to stop this insanity repeating itself unless all that pernicious legislation is removed, and housing finance is allowed to go back to being a commercial transaction, instead of a Democrat vote-buying mechanism. 'Community Reinvestment' aka 'affordable housing' aka government-enforced sub-prime lending is the ultimate in pork-barrel politics. America has sacrificed its economy to political correctness, and the world is now paying the price. The underprivileged communities and 'nontraditional borrowers' who were supposed to benefit from all this political extortion and bribery will of course be hit the hardest. These corrupt practices would not 'change' under Barack Obama, the man the media want to see elected President on the colour of his skin, not the content (if any) of his character. Mr Obama is beholden to ACORN and to the Congressional Black Caucus, which is absolutely committed to 'affordable housing' as a civil right and credit as a form of entitlement. They angrily denounced all attempts to reform Fannie Mae, insisting nothing was wrong with it. In 1995 Mr Obama was an attorney in Buycks-Roberson v. Citibank, on of the class actions that helped pressure government to force lenders into making more loans to those with poor credit.
http://www.telegraph.co.uk/opinion/main.jhtml?xml=/opinion/2008/09/28/do2802.xml
The 'bailout' may avert an economic (not just financial) disaster for the time being, but it does not address the underlying problem, which is that America's financial institutions are compelled BY LAW to provide credit in 'poorer neighbourhoods'. Ever since the Community Reinvestment Act of 1977 ( introduced under Carter, made even more insane by Clinton, and fiercely protected ever since by a heavily-lobbied Congress) loans and mortgages have been granted for socio-political reasons, not commercial ones. Applebaum follows the herd and blames it vaguely on 'Wall Street', but this was never Wall Street's idea. The original crime was a political one. The financiers protected themselves by selling the risky loans they were required to make to someone dumber than themselves (i.e. Democrat-run GSEs like Fannie Mae), and since that was profitable, they did more of it. So we ended up with pyramid-selling of bad debt.
There is nothing to stop this insanity repeating itself unless all that pernicious legislation is removed, and housing finance is allowed to go back to being a commercial transaction, instead of a Democrat vote-buying mechanism. 'Community Reinvestment' aka 'affordable housing' aka government-enforced sub-prime lending is the ultimate in pork-barrel politics. America has sacrificed its economy to political correctness, and the world is now paying the price. The underprivileged communities and 'nontraditional borrowers' who were supposed to benefit from all this political extortion and bribery will of course be hit the hardest. These corrupt practices would not 'change' under Barack Obama, the man the media want to see elected President on the colour of his skin, not the content (if any) of his character. Mr Obama is beholden to ACORN and to the Congressional Black Caucus, which is absolutely committed to 'affordable housing' as a civil right and credit as a form of entitlement. They angrily denounced all attempts to reform Fannie Mae, insisting nothing was wrong with it. In 1995 Mr Obama was an attorney in Buycks-Roberson v. Citibank, on of the class actions that helped pressure government to force lenders into making more loans to those with poor credit.
http://www.telegraph.co.uk/opinion/main.jhtml?xml=/opinion/2008/09/28/do2802.xml
