another republican meme destroyed. "the cra caused the crash".

Discussion in 'Politics & Religion' started by Free Thinker, Oct 10, 2011.

  1. how many times have you heard this from the right wing intelligentsia:

    THE CRA CAUSED THE HOUSING CRISIS.




    The Subprime Crisis: Is Government Housing Policy to Blame?

    Robert B. Avery*
    Senior Economist

    and

    Kenneth P. Brevoort
    Senior Economist

    Division of Research and Statistics
    Board of Governors of the Federal Reserve System
    Washington, DC 20551

    August 3, 2011

    We find little evidence that either the CRA or the GSE goals played a significant role in the subprime crisis. Our lender tests indicate that areas disproportionately served by lenders covered by the CRA experienced lower delinquency rates and less risky lending. Similarly, the threshold tests show no evidence that either program had a significantly negative effect on outcomes.

    http://www.ritholtz.com/blog/2011/1...ampaign=Feed:+TheBigPicture+(The+Big+Picture)