[lbo-talk] [Pen-l] Community Reinvestment Act at fault -- NOT

Shane Taylor shane.taylor at verizon.net
Tue Oct 7 21:30:55 PDT 2008


Doug Henwood wrote:


> The Rep line is ugly, but there is a grain of truth
> to it in that Clinton & Co. encouraged subprime
> lending as a low-income housing policy. It was a
> market-friendly substitute for spending actual money
> on public housing and rent subsidies.

How much blame goes to them for the gutting of lending standards? My impression was that the primary rationale for slashing standards was to jack-up the volume of mortgages.

Shane



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