Could this whole financial crisis been avoided if the Dem Congress did not eliminate Red Lining by Banks?

The Dem congress enacted legislation to remove due dillegence banks used to apply to less than credit worthy customers..(read)...minorities and the underclasses. This forced banks into making questionable loans to individuals that were less than credit worthy.Could this whole financial crisis been avoided if the Dem Congress did not eliminate Red Lining by Banks?
You have a point there. The government tried to get private business to provide housing to the poor rather than a taxpayer backed organization like HUD or Farmer's Home Loan. The burden ended up in the taxpayer's lap anyhow.Could this whole financial crisis been avoided if the Dem Congress did not eliminate Red Lining by Banks?
What a load of nonsense. This crisis has virtually nothing to do with redlining and loans to minority communities. That is simply a right-wing and racist spin that has no basis whatsoever in reality.

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Could this whole financial crisis been avoided if the Dem Congress did not eliminate Red Lining by Banks?
Wrong!



If there's a crash, McCain will take a big part of the blame.



In 1999, John McCain's former financial adviser Phil Gramm was responsible for unwinding the Glass-Steagall Act of 1933. All economists conservative and liberal alike now agree that this is the main cause of the current economic crisis. John McCain was a huge supporter of unwinding Glass-Steagall, said it would be great for the economy and was one of the leading Senators to back the legislation Gramm authored and that Bill Clinton foolishly signed. John McCain has went on record saying we need more deregulation such as this.



Ask yourself......



1) Do you support McCains' decision to support Glass-Steagall?



2) Are you enjoying the current economic nightmare that McCain helped cause?



3) Are you fool enough to vote for the same idiot that believes we need more of this type of reckless deregulation?


That is simply a load of horse crap. Minority areas are not the only areas that received loans based upon dubious qualifications. This has nothing to do with redlining.



The cause of the crisis were the unregulated derivative credit instruments that banks, insurance companies, brokerage houses and investment banks created and traded. AIG and virtually every Wall Street investment bank traded so much in the unregulated markets that they had taken on risk to the tune of several times their capitalization. THAT is what has caused the crisis.



I know conservatives and racists would love to pin the crisis on lending to minority neighborhoods in order to confirm their prejudices. But that isn't the cause and believing it to be is to deny reality.