Reply #12: Article is only half right

[aikanae]

I don't agree. The financial markets could have withstood the subprime loan disaster - and there's no proof that the Community Reinvestment Act contributed.

But that's not all it was. What banks did multiplied the bad housing debts beyond what financial markets could deal with. That's what built the coffin and added the nails. Greenspan played a very important role in looking the other way - expecting markets to self regulate, essentially allowing the top national banks to be "on their honor" (2004). HAH! There was no honor.

From what I read, there's good reason to believe there wasn't full disclosures made on a number of the ARMS loans. They trapped a lot of professional investors who weren't aware of everything.

This is why investigations need to be held - that way there's a national consensus of what happened. Without that, significant reforms can't be made and it'll happen again. Soon and worse.