>> |
02/10/10(Wed)13:49 No.122436>>122403 >ONE FUCKING PERSON. Fuck, you faggots are dense. One
person caused the financial crisis? Really?
No, see:
In
order to try to diversify the risk of these loans, the Federal Home
Loan Mortgage Company ("Freddie Mac") pioneered the "securitization" of
bundles of these high-risk loans so that they could be sold on secondary
markets. Such "securitization" exploded during the 1990s as a result of
government regulation. As Fed Chairman Ben Bernanke himself stated in a
March 30, 2007 speech entitled "The Community Reinvestment Act: Its
Evolution and New Challenges" (published online by the Fed),
Securitization
of affordable housing loans expanded, as did the secondary market for
these loans, in part reflecting a 1992 law that required the
government-sponsored enterprises, Fannie Mae and Freddie Mac, to devote a
large percentage of their activities to meeting affordable housing
goals. (p. 3)
In 1994 the Riegle-Neal Interstate Banking and
Branching Efficiency Act loosened up the regulatory barriers to bank
mergers. Consequently, said Bernanke, "As public scrutiny of bank merger
and acquisition activity escalated, advocacy groups [like ACORN]
increasingly used the public comment process to protest bank
applications on CRA grounds." In other words, there was a burst of
additional legalized extortion perpetrated by the Fed and its pet
"activist organizations" beginning in the mid-1990s. As a result, says
Bernanke, "banks began to devote more resources to their CRA programs."
What an understatement.
Also in 1995, the US Treasury Department
created the multibillion-dollar "Community Development Financial
Institutions" fund to "provide banks with access [i.e., taxpayers'
dollars] to new opportunities to finance community economic development"
as "encouraged" by the CRA, said the Fed chairman. |