http://www.lewrockwell.com/dilorenzo/dilorenzo125.html
The Government-Created Subprime Mortgage Meltdown
by Thomas J. DiLorenzo
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The thousands of mortgage defaults and foreclosures in the “subprime” housing market (i.e., mortgage holders with poor credit ratings) is the direct result of thirty years of government policy that has forced banks to make bad loans to un-creditworthy borrowers. The policy in question is the 1977 Community Reinvestment Act (CRA), which compels banks to make loans to low-income borrowers and in what the supporters of the Act call “communities of color” that they might not otherwise make based on purely economic criteria.
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Ahh, yes, the gooferment creates the problem, engages in other policies the worsen it, and then are Casablanca-style shocked to find there’s a problem. And, of course, the fix is — you guessed it — more gooferment. Sigh. When do we get off the treadmill?
Buy gold. The real thing. Bullion coins. The gooferment can’t print more of those.
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Reinke Faces Life 