Here is the deal paulejb. Credit Default Swaps came out of the Gramm-Leach-Bliley Act. It was proposed by three Rs. When it was first passed in the Senate there were 53 Rs for and 44 Ds against. In other words, it was an exclusively R invention and proposal. That is where our financial crisis was conceived and where it came from.
Because it got caught in 'conference committee', improvements to the Community Reinvestment Act were added. That is how the GBLA got 'sold'. The GBLA was entirely a creation of the Rs. The CRA is the law that the uninformed dupes of the propaganda machine think 'forces banks to make loans to unqualified borrowers'. That's the propaganda redherring. But the CRA forces no one to make a loan to any unqualified borrower. It prohibits 'redlining', the practice of not lending in certain areas.
Blaming Dems for what was done under the GLBA is like blaming Dems who voted for the Iraq invasion for how Dubya screwed it up.
Here's an article from BusinessWeek that shoots down the BS about the CRA.
Community Reinvestment Act had nothing to do with subprime crisis
Posted by: Aaron Pressman on September 29
Fresh off the false and politicized attack on Fannie Mae and Freddie Mac, today we???re hearing the know-nothings blame the subprime crisis on the Community Reinvestment Act ??? a 30-year-old law that was actually weakened by the Bush administration just as the worst lending wave began. This is even more ridiculous than blaming Freddie and Fannie.
http://www.businessweek.com/investing/insights/blog/archives/2008/09/community_reinv.html
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