There's a WEASEL afoot here. Double talk, and the "devil made me do it."
It’s always fascinating - and frankly scary - when one of these delusional leftists suffering from their mental illness of liberalism asserts that the sane people are crazy. Wow.
This author is utterly ignorant, either through stupidity or through willfulness.
Let’s start here: “Indeed, three quarters of those risky subprime mortgages were made by independent mortgage brokers or other institutions not subject to CRA.”
Yup, but they were still threatened with lawsuits for “red-lining” if they didn’t make such mortgages. On top of that, the banks KNEW the paper they were being forced to underwrite was cr@p, so they offloaded as much risk as they could by creating “mortgage backed securities.” Now those looked good on paper, so everyone got in on the game, and the contagion spread. Then when the cr@p paper turned out to be, well, cr@p, the whole house of cards came crashing down.
So let’s say regs were put in place to kill of mortgage backed securities. What then? The banks would have found another way to offload this risk as long as they could, stopped issuing the cr@p paper and been sued out of existence (more properly nationalized) by the donks, or gone under.
And finally, bad paper issued by 1/4 of the institutions (the 1/4 the idiot author claims were the only ones subject to CRA) was still MORE than enough to have wrecked the whole system, maybe just a little slower. Again, what an idiot.
It ALL goes back to the CRA and its consequences.