Mike Barnhill
Ashland
Dear Editor:
I disagree with a recent critique by Charlotte Schnieders of Ms. Reichel's LTE. Probably best left alone to her critical opinion, after all, everyone has an opinion. So rather than argue with Schnieders, let's just say "I challenge her opinion" with these informative articles that quote both the pro and con of Bill Clinton's Community Reinvestment Act. The accused culprit of the 2007-2008 recession. This information can be found using Google search.
Here's an article by Investor's Business Daily that says, "In 1995, using his powers of presidency, Bill Clinton turned the 1977 Community Reinvestment Act into an aggressive program that basically forced banks to lend money to 'underserved' communities. That meant those with low incomes couldn't necessarily replay a loan. In general meaning, Clinton is responsible for the 2007-2008 recession."
However, in defense of Clinton's actions is this explanation. "The Financial Crisis Inquiry Commission established on May 20, 2009, by Congress concluded that the CRA was not a significant factor in subprime lending or the crisis. Many subprime lenders were not subject to the CRA. Research indicates only 6 percent of the high-cost loans — a proxy for subprime loans — had any connection to the law. Loans made by CRA-regulated lenders in the neighborhoods in while they were required to lend were half as likely to default as similar loans made in the same neighborhoods by independent mortgage organization not subject to the law.
Thus in the battle over whether too much or too little regulation of the financial section played a role in causing and exacerbating the crisis, the evidence points away from those who criticize government regulation was at fault.
Once more, I think we may agree that President Clinton's actions in establishing the CRA were like many government programs.."good intentions with bad results." If there is a way to defraud, misuse, abuse or take advantage of any bill or law.some within the American public will find a way to destroy the whole program's intent.
"Opinion" - Google News
March 25, 2020 at 12:13PM
https://ift.tt/2WFVJGT
Your Opinion: Response to Schnieders - Jefferson City News Tribune
"Opinion" - Google News
https://ift.tt/2FkSo6m
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