tag:blogger.com,1999:blog-1194375569044391746.post5368719751959219571..comments2024-03-28T05:30:09.322-04:00Comments on Corporate Justice Blog: Rabbit Hole EconomicsSteven Ramirezhttp://www.blogger.com/profile/16741346526253732489noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-1194375569044391746.post-27689239451602726072011-10-15T20:59:31.287-04:002011-10-15T20:59:31.287-04:00kenneth w:
the point of the post is that the nati...kenneth w:<br /><br />the point of the post is that the nation's poor are NOT responsible for the mortgage crisis of 2008. blaming minority borrowers for causing the financial market crisis is subterfuge for the real causes of the meltdown, i.e., non-bank lenders, wall street executive short-termism, politicians, fiscal policies influenced by wall street lobbyists, credit rating agencies, amongst many other causes. the "racial coding" is evident in the blaming of minority borrowers now transmogrified into blaming the community reinvestment act, fannie mae and freddie mac, as the primary drivers of the crisis. this is just another way to say governmental social engineering OR minority borrowers, are responsible for near global economic collapse. this is simply not true.<br /><br />while governmental policy, through hud, fannie and freddie did play a minor role in the crisis, it was not the primary role. as to whether the government is in the best position to educate and change the borrowing system, sadly, congress has already failed to initiate these needed reforms in its passage of the far-too-weak dodd-frank act.dré cummingshttps://www.blogger.com/profile/13427038538259417962noreply@blogger.comtag:blogger.com,1999:blog-1194375569044391746.post-49757588370659677352011-10-14T17:22:10.733-04:002011-10-14T17:22:10.733-04:00I agree that the government is not the sole factor...I agree that the government is not the sole factor in the 2008 financial crisis however, they hold a substantial portion of the blame and this cannot be discounted. I think that focus should remain on the government and how they can affect change in policy in order to alleviate a similar crisis in the future. For example, the article mentions that the nation's poor is to blame and that this is a problem that must be resolved to avoid a recurrence. How can this problem be corrected? The government is in the best position to prevent the nation's poor from getting into loans that they "had no business." This is problem that can be achieved by raising borrowing standards, tweaking the system that sets your loan amounts according to your risk level, or creating programs that educate borrowers before they enter into loans. I can't think of a solution to prevent people from getting into loans when the government is in the best position to educate and change the borrowing system. Thus I believe that the attention on the government is correctly focused.Kenneth W (Memphis Law)noreply@blogger.com