I have periodically posted the YouTube video “Burning Down the House” on this website to remind people what actually caused the housing bubble as opposed to what they were being told caused the housing bubble. There is a reason I am posting it again.
In December 2012, a website called examiner.com posted a story with the headline, “New study confirms economy was destroyed by Democrat policies.” Sounds like the video at YouTube. The study was done by the National Bureau of Economic Research and released the week of December 21, 2012.
The article reports:
-No one was making bad loans to unqualified people until Democrats came along and threatened to drag banks into court and have them fined and branded as racists if they didn’t go along with the left’s Affirmative Action lending policies…all while federally insuring their losses. Even the New York Times warned in the late 1990s that Democrats continuing to force banks into lowering their standards would lead to this exact catastrophe.
–Obama himself is even on the record personally helping sue one lender (Citibank) into lowering its lending standards to include people from extremely poor and unstable areas, which even one of the left’s favorite blatantly partisan “fact-checkers,” Snopes, admits (while pretending to ‘set the record straight’).
If we are to remain a free people, we need to understand facts–not spin. The lies that have been told about the financial collapse of 2007 are astounding. Even worse is the fact that the Dodd-Frank legislation passed as a result of the collapse does not come anywhere near addressing the core issue.
The graph below from the National Bureau of Economic Research study shows the impact of the Community Reinvestment Act on mortgage lending:
It is time to change both the Washington culture and the media culture. Unless we do that fairly quickly, we will cease to exist as a free, prosperous nation.