On Mon, Jun 13, 2011 at 12:12 AM, Randall Webmail <rv...@insightbb.com> wrote: > That's right: POOR PEOPLE caused the Current Unpleasantness! The people who > pushed the Liar Loans and the alleged people who packaged those into > securities and the alleged people who gave those securities AAA ratings and > the alleged people who sold those AAA securities and the alleged people who > bought those AAA securities and so on are completely blameless. POOR PEOPLE > caused the financial crisis!
Who said anything about poor people? Just because CRA and Frannie were sold partly as programs that benefit the poor doesn't mean that was either the actual intention, or the effect. The people who pushed liar loans did it in large part because there were large incentives to doing that, which were mostly a result of not playing with their own nor their bosses' money, but with funny money, since no matter what loans they made there was always a ready buyer in Frannie, backed with a ready lender of last resort in the Fed. Yes, people who made funny loans committed sins, but they wouldn't have been able to (not in the same scale anyways) without the larger, more original sin committed by the politicians (who did it in the name of the poor, or whatever). IF Congress had created an above board $100 billion/year housing subsidy for the poor, that wouldn't have led to a bubble, and it would have helped the poor much more than the actual, hidden $100 billion/year housing subsidy did. If you care about the poor you won't defend CRA and Frannie blindly. Nico -- _______________________________________________ cryptography mailing list email@example.com http://lists.randombit.net/mailman/listinfo/cryptography