We’ve gt a deep recession, a credit crunch, job losses, and business failures, all started by a mortgage loan crisis.   We are paying for that mortgage loan crisis, and it appears that nobody saw it coming.

How could so many knowledgeable people have missed it?   When Jimmy Carter signed the Community Redevelopment Act of 1977, requiring financial institutions to make loans to people in low-income areas, it should have been clear that a lot of these loans weren’t going to be repaid.   But they all said, we’ve got to stop redlining, the federal government is going to insure the loans anyway, and the government’s sending monitors to make sure we make these loans, so we’ll go ahead and make them although we’re pretty sure they won’t be repaid.

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Mike Scruggs