Did You Know 
1 Comment DYK – The Center of Blame for the Economic Collapse Part 2
continuation of DYK- The Center of Blame for the Economic Collapse Part I…
Who is to blame? What events triggered it? The Library of Congress has that answer and it is quite clear. The answer is the Community Reinvestment Act of 1977, the Federal Reserve (private banking system in charge of the nation’s finances and may be unconstitutional), President Bill Clinton (Democrat) and the citizens for not keeping a watchful eye on them. To read more that spells it out as all going back to housing not the war go here, here, and here
It was described quite well here.
“The Community Reinvestment Act of 1977 is a federal law that intimidated lenders into offering credit throughout their entire market and discouraged them from restricting their credit services to low-risk markets, a practice sometimes called redlining. The Federal Reserve Bank, keeping interest rates artificially low, gave buyers and builders incentive to buy and build, thereby producing the housing bubble.”
Who in Congress passed it? We start by checking in with the Federal Reserve. There we have three dates to look up. It was enacted by Congress in 1977 under the code 12 U.S.C. 2901 and signed into law by then President Jimmy Carter (Democrat). It was “substantially revised” in May 1995 and amended in August 2005.
Here is your list of culprits:
1977 – President Jimmy Carter (Democrat) 95th United States Congress – Senate: Democrat majority 61 to 39 Republicans – House of Representatives: Democrat majority 292 to 143 Republicans
1995 – President Bill Clinton (Democrat) “Reforms made by the Clinton administration require the CRA evaluation of lending institutions to be based on actual lending, service, and investment performance.” Since it was already law, reforms could be made in how it was regulated and enforced. House and Senate were controlled by Republicans.
2003 – President George Bush (R) proposed some changes to fix the problems but those changes were blocked by the Republican controlled House and Senate (51 R to 49 D) with efforts led by the Democrats. The modifications failed mainly along party lines.
2005 – The FDIC made modifications to the implementation of regulations.
2008 – Housing bailout measure that benefitted China more than the USA. Pressed by Representative Chris Dodd (D) in a House of Representative: Democrat majority 235 to 199 Republicans – Senate: Democrat majority 51 (2 Dem leaning Independents) to 49 Republicans. Voting was mainly on party lines. Signed into law by President George W Bush (R)
Instead of butting out of the financial matters of the private citizen, the government created this mess by interfering and pushing through a desired social and economic change. It failed horribly and now we have the economic mess we have. From the voting records, the party holding the greatest blame is the Democrat party. The citizens are to blame for not keeping them in check and permitting such excessive control to continue.
How does the USA fix the economy? The heck if I know. Whatever the answer is, it will be painful.
I truly hope US citizens who are eligible to vote would wake up and not say “I don’t care about politics anymore.” Please read and be aware of the current status of this country. I may not be a US citizen yet but this is going to be my home and I want my child’s future to count for something more than just paying off the debt of others. That isn’t fair to our children.
Thanks for reading,
Anah
A friend of mine just emailed me one of your articles from a while back. I read that one a few more. Really enjoy your blog. Thanks