tag:blogger.com,1999:blog-24926635.post478431275042262693..comments2023-03-26T01:08:25.366-07:00Comments on Coyote Squirrel's Random Musings: The Heart of DorknessR.A. Porterhttp://www.blogger.com/profile/14851961356321735388noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-24926635.post-15681918519398595282008-09-30T13:12:00.000-07:002008-09-30T13:12:00.000-07:00Well, friends *are* allowed to disagree. :)My prob...Well, friends *are* allowed to disagree. :)<BR/><BR/>My problem with redlining is that it's extremely indiscriminate in its discrimination. So even someone with a good job, good credit, and utterly responsible who can pay a loan off can't get one because of the neighborhood. Not because of who he is, but where he lives.<BR/><BR/>Beyond that, loans *were* given to people who couldn't afford them. But that's because of the greed of the lenders. They knew they could sell the high risk loans up to another lender or Fannie/Freddie and not have to bear the risk. They did this for quick, ready profits, not because some community organizers were hassling them. In fact, all the community organizers I've ever known would be shocked to learn they have all this heretofore unrealized power.<BR/><BR/>Any bank was free to say, "no" to any loans. They chose not to because they were profitable in the near-term - by selling the high-risk loans up the chain - and in the long-term - by keeping them in compliance with the CRA, and therefore capable of swallowing up/being swallowed by other banks. If they were content remaining moderately sized and not seeking massive profits, they would have been more judicious in their lending.R.A. Porterhttps://www.blogger.com/profile/14851961356321735388noreply@blogger.comtag:blogger.com,1999:blog-24926635.post-39071164055252245182008-09-30T11:36:00.000-07:002008-09-30T11:36:00.000-07:00Rats, for the first time, I completely and utterly...Rats, for the first time, I completely and utterly disagree with you.<BR/><BR/>Bottom line is we're in this damn mess because of loans to people who couldn't possibly pay them back.<BR/><BR/>Redlining was simple common sense, and when the Dems forced this practice to end, well, here we are.<BR/><BR/>1992 was the beginning of this end.<BR/><BR/>I do agree that greed has inflated the cost, also that the fatcats of failed companies shouldn't get bonuses. But that's about it.<BR/><BR/>If you have any specific info regarding this, please give it to me. I could be wrong after all.2old4thishttps://www.blogger.com/profile/10513797165178931096noreply@blogger.com