Conservative commentators in the Wall Street Journal and the National Review, and on YouTube are spreading the myth that the Community Reinvestment Act, a law designed to eliminate discriminatory banking practices, caused the current financial crisis. In the words of Fox News' Neil Cavuto, “Loaning to minorities and risky folks is a disaster.”
Conservatives have twisted the facts to substantiate their revisionist history. But don’t be fooled: the financial crisis was caused by conservative financial follies and bankers run amok and nothing more. more »
Help us spread the word about these important stories...
Fannie and Freddie Mac own half of all mortgage debt in America; in the past 8 years an increasing share was subprime and othe risky mortgage products as they lowered lending standards.
This weekend, Treasury Secretary Henry Paulson, former head of the Goldman Sachs investment house, provided us with a perfect demonstration of Wall Street socialism. Everything about Fannie Mae and Freddie Mac has been nationalized—except the profits and the pay scales of their executives. more »
Help us spread the word about these important stories...
motherjones.com — Phil Gramm is in the headlines today—being slammed by Democrats and disavowed by the McCain campaign—for complaining to The Washington Times that "we have sort of become a nation of whiners." But as this tempest was under way, another Gramm story went little noticed: a top McCain aide—Carly Fiorina—indirectly implicated Gramm in the current economic mess.
Nationwide, 1.5 million subprime adjustable-rate mortgages will reset to higher interest rates this year, putting many of those homeowners at risk of falling behind on their payments and losing their homes.
Democratic leaders in the House are currently sketching out the details of an economic stimulus package designed to soften the blow later this year of the now-apparent recession.
But Robert Kuttner, founding co-editor of The American Prospect and the author of “The Squandering of America,” is warning that the Democrats should seize the opportunity – and take the political risk – of offering a bold and robust plan to not only stimulate the economy in the short run but reform the economy in the long run. more »
Help us spread the word about these important stories...
latimes.com — The current credit crisis, subprime slump, and stricter lending practices may lead to an 11-year low in sales of previously owned homes this year.
guardian.co.uk — Not only was Angelo Mozillo paid $146 million in 2006, but the CEO of Countrywide Financial got a severance package worth about $40 million when Bank of America bought the mortgage company.
Delicious
Digg
StumbleUpon
Propeller
Reddit
Magnoliacom
Newsvine
Furl
Facebook
Google
Yahoo
Technorati
Making Sense 2008!
