Don't Believe the Revisionist History
Once upon a time, the lending industry was the loudest cheerleader in the subprime lending game, and there were no referees to stop the action. Now industry claims the government made them make millions of reckless mortgages.
In fact, today's financial meltdown began with reckless subprime lending that was driven by Wall Street's desire for high-interest loans. Wall Street demanded the loosest underwriting and most dangerous loan products in mortgage history, and there was no will in Washington to stop them.
To get the real facts, check out these sources:
Spin and outright lies on cause of economic crisis
by Martin Eakes | Herald Sun | October 18, 2008
Private sector loans, not Fannie or Freddie, triggered crisis
By David Goldstein and Kevin G. Hall | McClatchy Newspapers | October 12, 2008
Scapegoating the Economic Crisis
By Judith Bell | EquityBlog | October 10, 2008
Subprime Suspects
By Daniel Gross | Newsweek | October 7, 2008
Crazy Talk
By Michael Ettlinger | Center for American Progress | October 2, 2008
Blame it on the Immigrants
By David M. Abromowitz | Center for American Progress | September 26, 2008
It's Still Not CRA
By Ellen Seidman | New America Blogs: The Ladder | September 22, 2008
When In Doubt, Yell "Fannie Mae"
By David M. Abromowitz | The Huffington Post | September 19, 2008
The Community Reinvestment Act: Thirty Years of Accomplishments, But Challenges Remain
By Michael Barr | Testimony before US House of Representatives Financial Services Committee | February 13, 2008