Has anybody debunked this POS yet?

[guitar man]

I keep getting this video link sent to me in emails and I waould like to smack someone upside the head with some debunking,so if any of our good DU debunkers have encountered this, I'd appreciate a link to the straight story.

http://www.youtube.com/watch?v=NU6fuFrdCJY

I'd run it all down myself, but my boss has me covered up this week.

thanks :hi:

[calmblueocean]

1. Debunking this shit really needs to be Priority One right now, before it gets legs.

I'm getting all this same crap in the mail. The wingnuts see the bankruptcy of their philosophy on display, and they're coming up with all kinds of excuses and scapegoats, trying to blame it on Clinton and "government intervention in free markets". Here's one part of the debunking

http://www.businessweek.com/investing/insights/blog/archives/2008/09/community_reinv.html

Community Reinvestment Act had nothing to do with subprime crisis
Posted by: Aaron Pressman on September 29

Fresh off the false and politicized attack on Fannie Mae and Freddie Mac, today we’re hearing the know-nothings blame the subprime crisis on the Community Reinvestment Act — a 30-year-old law that was actually weakened by the Bush administration just as the worst lending wave began. This is even more ridiculous than blaming Freddie and Fannie.

The Community Reinvestment Act, passed in 1977, requires banks to lend in the low-income neighborhoods where they take deposits. Just the idea that a lending crisis created from 2004 to 2007 was caused by a 1977 law is silly. But it’s even more ridiculous when you consider that most subprime loans were made by firms that aren’t subject to the CRA. ...

It’s telling that, amid all the recent recriminations, even lenders have not fingered CRA. That’s because CRA didn’t bring about the reckless lending at the heart of the crisis. Just as sub-prime lending was exploding, CRA was losing force and relevance. And the worst offenders, the independent mortgage companies, were never subject to CRA — or any federal regulator. Law didn’t make them lend. The profit motive did. And that is not political correctness. It is correctness.

[guitar man]

2. thanks

:hi:

[BanzaiBonnie]

3. Yeah, my father believes this crap

Because Faux told him it is so.

[sinkingfeeling]

4. Send them this .pdf of a study showing CRA deterred irresponsible lending.

http://www.traigerlaw.com/publications/traiger_hinckley_llp_cra_foreclosure_study_1-7-08.pdf

Here's a Reuter's story on the report:
http://www.reuters.com/article/pressRelease/idUS135259+07-Jan-2008+BW20080107

NEW YORK--(Business Wire)--A Traiger & Hinckley LLP study of 2006 mortgage loan data suggests
that the Community Reinvestment Act, a federal law that requires banks
to help serve the credit needs of their local communities, including
low- and moderate-income neighborhoods, deterred banks from engaging
in the kinds of risky lending practices that are provoking the
foreclosure crisis.

Compared to other lenders in their communities, banks making loans
in their CRA assessment areas (CRA Banks) were less likely to make a
high cost loan, charged less for the high cost loans they did make,
and were substantially more likely to eschew the secondary market and
retain high cost and other loans in portfolio.

[guitar man]

5. thanks

I just hit them right upside the head with that one ;)

[L. Coyote]

6. Make a chart of Bush tax cuts to the RICH and the real estate Bubble!

The excess free capital produced the bubbles!
Previous tax cuts were linked to investment in jobs, etc., and not for real estate investing!!!

What we need to hammer home is that the Bush tax cuts destroyed the economy and, with his war on Iraq, emptied the USG Treasury.

[succubus.blues]

7. Think Progress also has

a piece up on this.

http://thinkprogress.org/2008/09/26/bachmann-ellison-economy/

[guitar man]

10. thanks

this will make some heads explode :evilgrin:

[succubus.blues]

11. Good.

I get so sick of this shit. Morally corrupt jerks who can't take responsibility for their mess.

[nxylas]

8. I watched about two minutes of that video

My eyes hurt. The director/editor's philosophy seems to be "flash it up as quickly as possible before the audience has time to think". I seriously doubt that many people will stick around for the full 10 minutes.

[orwell]

9. A bit off topic...

...All subprime loan failures/foreclosures are running at about 500,000. That represents around 1/2 of 1% of all mortgages in the US. It's about 17% failure rate of all subprime mortgage loans written.

This talking point is a canard.