The Architects of Destruction
The financial markets’ collapse — broken down — is a disgusting tale of enablers, exploitation, and ignorance…
… The wheels of which were set in motion over 31 years ago with the 1977 passing of the Community Reinvestment Act (CRA).
In short, this Act was designed to encourage FDIC insured commercial banks and savings associations to meet the needs of borrowers in all segments of their communities, including low- and moderate-income neighborhoods.
It sounded like a wonderful plan. It meant well. And like many things, it looked great on paper… when you first glanced at it. After all, everyone should have access to some credit, and this law was meant to better our deteriorating cities.
Except, instead of banks freely choosing who they would give credit to, and determine the amount of credit the borrower would be approved for, the CRA — in a sense — held hostage the banks, forcing them to give borrowers as much money as the borrower needed, not deserved or could pay for.
Harold