September 26, 2008

Stupid is as stupid does

In 1977 President Jimmy Carter signed the Community Redevelopment Reinvestment Act (or CRA) into law. As a result of “national grassroots pressure for affordable housing”, it forced banks to underwrite risky mortgage loans in order to meet the needs of “the entire community.”

In 1995 the Clinton administration strengthened the regulations of the Community Redevelopment Act. [...]