Free Capitalist Network - Community Archive
Mises Community Archive
An online community for fans of Austrian economics and libertarianism, featuring forums, user blogs, and more.

Community Reinvestment Act

rated by 0 users
This post has 12 Replies | 2 Followers

Top 500 Contributor
Male
Posts 260
Points 6,815
Individualist Posted: Thu, Jan 1 2009 3:07 PM

What's the center of the debate about whether the Community Reinvestment Act caused the housing "crisis"?

"Every decent man is ashamed of the government he lives under."  - H. L. Mencken

 

  • | Post Points: 35
Top 500 Contributor
Posts 257
Points 4,685
Top 500 Contributor
Male
Posts 260
Points 6,815

I don't know as much about economics as I would like to. I just know Ron Paul and Tom DiLorenzo have indicated the CRA was a significant factor in the housing "crisis". Others, like Jacob Weisburg and Clarence Page, think it's just plain wrong to point the finger at the CRA.

"Every decent man is ashamed of the government he lives under."  - H. L. Mencken

 

  • | Post Points: 20
Top 10 Contributor
Male
Posts 4,985
Points 90,430

Go through this: http://mises.org/story/3128

"You don't need a weatherman to know which way the wind blows"

Bob Dylan

  • | Post Points: 5
Top 500 Contributor
Male
Posts 260
Points 6,815

Richard Chambers:

I don't know as much about economics as I would like to. I just know Ron Paul and Tom DiLorenzo have indicated the CRA was a significant factor in the housing "crisis". Others, like Jacob Weisburg and Clarence Page, think it's just plain wrong to point the finger at the CRA.

What I was saying here was that the article you linked to is too complicated for my shallow knowledge of economics.

"Every decent man is ashamed of the government he lives under."  - H. L. Mencken

 

  • | Post Points: 20
Top 10 Contributor
Male
Posts 4,985
Points 90,430

Then read Callahan's Economics for Real People, followed by Hazlitt's Economics in One Lesson, followed by Menger's Principles of Economics.

"You don't need a weatherman to know which way the wind blows"

Bob Dylan

  • | Post Points: 20
Top 500 Contributor
Male
Posts 260
Points 6,815

GilesStratton:

Then read Callahan's Economics for Real People, followed by Hazlitt's Economics in One Lesson, followed by Menger's Principles of Economics.

I've read much of the first two books you mentioned. I can understand basic economics, and based off it I think the Austrian School is correct. It's that supply and demand stuff that really loses me.

"Every decent man is ashamed of the government he lives under."  - H. L. Mencken

 

  • | Post Points: 20
Top 10 Contributor
Male
Posts 4,985
Points 90,430

Go for Menger's book then, Gordon has a really easy but helpful read called An Introduction to Economic Reasoning, once you've read of all that you're easily in a position to tackle a book like Man, Economy and State.

"You don't need a weatherman to know which way the wind blows"

Bob Dylan

  • | Post Points: 5
Top 10 Contributor
Male
Posts 5,255
Points 80,815
ForumsAdministrator
Moderator
SystemAdministrator

Because it is hardly all there is to it. Without the Fed supplying cheap, abundant credit, the CRA would not be as much of an issue.

Freedom of markets is positively correlated with the degree of evolution in any society...

  • | Post Points: 5
Top 500 Contributor
Male
Posts 260
Points 6,815

Richard Chambers:

I don't know as much about economics as I would like to. I just know Ron Paul and Tom DiLorenzo have indicated the CRA was a significant factor in the housing "crisis". Others, like Jacob Weisburg and Clarence Page, think it's just plain wrong to point the finger at the CRA.

Can someone explain why the CRA is blamed for much of the housing mess in light of what Wikipedia says about it? (I realize Wikipedia is not a source to cite in a research paper, but I suppose it's all right if I cite it in this context.)

"Every decent man is ashamed of the government he lives under."  - H. L. Mencken

 

  • | Post Points: 20
Top 10 Contributor
Male
Posts 4,985
Points 90,430

Richard Chambers:

Richard Chambers:

I don't know as much about economics as I would like to. I just know Ron Paul and Tom DiLorenzo have indicated the CRA was a significant factor in the housing "crisis". Others, like Jacob Weisburg and Clarence Page, think it's just plain wrong to point the finger at the CRA.

Can someone explain why the CRA is blamed for much of the housing mess in light of what Wikipedia says about it? (I realize Wikipedia is not a source to cite in a research paper, but I suppose it's all right if I cite it in this context.)

I suppose because it's a good scapegoat for those who can't point the finger at the fed.

"You don't need a weatherman to know which way the wind blows"

Bob Dylan

  • | Post Points: 20
Top 500 Contributor
Male
Posts 260
Points 6,815

GilesStratton:

Richard Chambers:

Richard Chambers:

I don't know as much about economics as I would like to. I just know Ron Paul and Tom DiLorenzo have indicated the CRA was a significant factor in the housing "crisis". Others, like Jacob Weisburg and Clarence Page, think it's just plain wrong to point the finger at the CRA.

Can someone explain why the CRA is blamed for much of the housing mess in light of what Wikipedia says about it? (I realize Wikipedia is not a source to cite in a research paper, but I suppose it's all right if I cite it in this context.)

I suppose because it's a good scapegoat for those who can't point the finger at the fed.

What about Paul and DiLorenzo?

"Every decent man is ashamed of the government he lives under."  - H. L. Mencken

 

  • | Post Points: 20
Top 10 Contributor
Male
Posts 4,985
Points 90,430

Richard Chambers:

GilesStratton:

Richard Chambers:

Richard Chambers:

I don't know as much about economics as I would like to. I just know Ron Paul and Tom DiLorenzo have indicated the CRA was a significant factor in the housing "crisis". Others, like Jacob Weisburg and Clarence Page, think it's just plain wrong to point the finger at the CRA.

Can someone explain why the CRA is blamed for much of the housing mess in light of what Wikipedia says about it? (I realize Wikipedia is not a source to cite in a research paper, but I suppose it's all right if I cite it in this context.)

I suppose because it's a good scapegoat for those who can't point the finger at the fed.

What about Paul and DiLorenzo?

Well, they're both Austrians (although, Paul isn't an economist) so I'm sure that they understand that the fed credit expansion is partly to blame. I'm not really sure though. Nobody here is denying that the CRA is partly to blame, it's just that it can't be said to be the sole cause of the crisis.

"You don't need a weatherman to know which way the wind blows"

Bob Dylan

  • | Post Points: 5
Page 1 of 1 (13 items) | RSS