If You Can't Be Right, Just Be Loud
May 1, 2010
The prospect for real financial reform is growing, so payday lenders and other opponents are increasing the volume of attacks on reform supporters like CRL.
Some of the newest attacks are particularly inventive, but completely wrong as usual:
Claim: CRL and its affiliate Self-Help are out to "Sovietize" the American financial system.
Truth: The payday lenders are the ones using a propaganda machine (via fake front groups) to sell the "benefits" of 400% APR payday loans.
Claim: CRL set out to destroy the stock value of companies involved in subprime lending.
Truth: Subprime lenders have no one but themselves to blame, as they made unaffordable loans to financially-stretched borrowers and fueled a run-up in house prices to boot. Even back in 2004, the financial magazine Barron's warned that "Any dramatic change in today's salubrious environment of near-40-year lows in mortgage rates, steady economic growth, surging home values and seemingly bottomless reservoirs of capital sluicing into the mortgage market could wreak havoc on the industry." (No Margin of Safety, Barron's, 11 Oct. 2004)
Claim: CRL and Self-Help deliberately crashed the subprime market and threw millions of families out of their homes.
Truth: We've been fighting to expand homeownership for thirty years, and have fought since 1999 against the abuses that caused the subprime crisis. It was loose underwriting standards and lax oversight caused the financial crisis -- even the bankers say so.
What's next? CRL is responsible for global warming?
More straight answers: