Here we go again.
The financial crisis of 2007-2008 was one of then-Senator Obama’s top campaign talking points in the 2008 presidential election. Democrats claimed that “big banks and their Republican puppets” were responsible for the irresponsible financial behavior that brought about the burst of the housing bubble and subsequent financial market crash.
In reality, it was Democratic policies that were responsible for the mirage of a booming housing market in the early 2000s.
Despite the insistence by Democrats and the mainstream media that the Community Reinvestment Act (CRA) had nothing to do with the 2007-2008 crash, the evidence tells us otherwise.
A 2012 study by the respected, nonpartisan National Bureau of Economic Research (NBER) found that in spite of claims to the contrary, CRA did lead to riskier lending behavior on the part of banks.
Fast-forward to 2016 and yet another Democrat is pushing more stringent adherence to CRA.
To read about how President Obama wants banks to engage in these risky loans yet again, and why financial experts warn that his plan would “open the floodgates” and send us right back into economic crisis, continue reading on the next page: