Thursday, October 30, 2008

Fliuck That House

Ok, so this article slightly changes my view on the financial crisis, if anyone cares. Instead of the being directly influenced by the affirmative action aspect of the CRA, it was more more of an unintended consequence, I think.

This is the same guy from City Journal I had read before. He says it wasn't really a subprime crisis at all, but a adjustable-rate (ARM loans) crisis.

In a nutshell, the Flip That House mentality made possible by the CRA caused the problem, not massive job loss.

1 comment:

  1. But still the CRA remains the major problem with the whole mess.

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