Poor POC to Blame for Economic Crisis

The February 20th edition of MSNBC’s Morning Joe was particularly hard to watch. (See below)

Look what Horrible Person Pat Buchanan had to say about lending to “minority communities” causing the financial collapse:

BUCHANAN: The feds, Joe, the feds leaned on banks and threatened some of these banks, “You’ve got to make more loans,” so the banks — and pushed them out — you gotta help, frankly, in minority communities. And they pushed them out and the guys put nothing down and stuff, and then the banks sell the loans off to Fannie and Freddie.

SCARBOROUGH: And that’s what happened. Banks made bad loans. They sold it to Fannie and Freddie. Fannie and Freddie sold it to Wall Street.

DR. NANCY SNYDERMAN: That’s right.

SCARBOROUGH: They turned it into securities, chopped it up, sent it around the world, and here we are with the Dow Jones at its lowest rate since 1632.

I knew this was the fault of the poor all along! It’s a big conspiracy hatched by the children of Welfare Queens to find a new way to get the government to give them free $money$! They never intended to pay their mortgages, heck, they never even intended to live in their houses… they’re more comfortable sleeping out on the streets anyhow.

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2 thoughts on “Poor POC to Blame for Economic Crisis

  1. I was always under the impression that the banks that failed were investment banks. AFAIK, investment banks do not accept deposits and (were)/are less regulated than depository banks. Depository banks are more regulated and also less likely to fail b/c deposits provide a cushion in bad times. AFAIK, the Community Reinvestment Act, which only applies to banks that accept deposits, only bans redlining. It does not “[R]equire institutions to make high-risk loans that jeopardize their safety.” It also “[M]akes it clear that an institution’s CRA activities should be undertaken in a safe and sound manner.” Hence, many of the failing banks were not even regulated by the CRA. Hence, this is why I’m sure that no one will be able to mention what part of the CRA required investment banks to make high-risk loans in the first place.

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