@Foxfyre,
I read all of them, in fact. None of them support your contention at all. You shouldn't have to have this pointed out to you, a high-schooler could construct a more logical argument.
You wrote this:
Quote:
I will repeat that government meddling with the free market system and the government's using of the CRA to put pressure on lending institutions to make risky mortgages, sometimes highly risky mortgages, was the catalyst for the housing bubble and subsequent collapse.
This is incorrect for a variety of reasons, primarily, the CRA itself does not allow for risky mortgages to be given out. CI pointed this out earlier. You responded that the gov't did not follow those regulations, and that's fair enough; but you can't blame the legislation which is subsequently ignored by the regulators for the problem.
Also, I'd love to see that 'pressure.' Do you have any evidence of this? No?
I'd also love for you to detail what the CRA has to do with the many, many high-value mortgages purchased by rich folks, who do not fall under CRA guidelines, yet are as much of the problem as the poor folks.
Most importantly, though, your statement doesn't address the real question at hand:
How did the housing market collapse infect and bring down NON-LENDING financial institutions, who had no pressure from the government, and who were not typically involved in mortgages?
Show us, in steps, exactly how this happened; not just the collapse in the housing market, but how the collapse in the housing market caused the financial markets to collapse. Then explain to us how the government forced these investment houses to purchase into the housing market, in detail.
Cycloptichorn