CRA sandpit

A special sandpit for debate on the Republican Party claim that the global financial crisis was caused by some combination of the Community Reinvestment Act, Fannie/Freddie, and the stranglehold on US political power held by the Clintons in the early 2000s. I guess I’ve made my views on this clear enough, and I don’t propose to engage in further discussion.

32 thoughts on “CRA sandpit

  1. 25, history, like parliamentary inquiries into privatisation of utilities, turns up too many anomalies and contradictions.
    Better to ignore or “prorogue” the whole lot, lest the truth get in the way of a good story, or reaity challenges fondly nurtured personal delusions.

  2. Alice, why did you imply when saying “I’ll show you the twenty cities that have supposedly “recovered” [and] that home prices are still falling in every one of them?” that falling house prices are a Bad Thing for everybody? We own our house and have no intention of selling, so why should I care, while for all potential new buyers, falling house prices are a Good Thing, are they not?

    Previously you contested my remarks about underground rail systems in London etc.

    The London Underground has NOT been privatised, and vast sums have been poured into extending the network ever further in all directions (eg Picadillly Line to Heathrow plus new lines, Victoria, Jubilee, etc etc). The problem is the massive immigration from all corners of the globe, almost all concentrating in and around London (Greater London now extends de facto to Oxford, Cambridge, Brighton etc). When I lived and worked in London one could get a seat in offpeak times, mid-morning and so on. Now, never, or so my daughter tells me.

    I forget who here linked to the Green Party’s Policy on Sustainable Planning and Transport. Unlike UK, it calls for reducing Australian Settlement (send us all back to whence we came, faute de mieux, at #3). Of the 40 items, most are repeated at least 3-4 times. What I found very funny is that the Greens (sic) think we should all be housed in high rise apartments in CBDs in order to reduce reliance on cars. Away with gardens on 1/4 acre plots, a few pot plants on balconies are much greener! (See #8,9,10,11,12,14,15,17,21,26).

    This document reminds me of seeing Green policies in practice in the Prague, Warsaw, and Kiev, that I knew during or soon after the Brezhnev era: everybody (apart from the apparatchiks with their dachas) duly housed in hideous apartment blocks with not even balconies, and no private cars other than those of the apparatchicks. Such bliss! yet oddly all the economists and IT specialists I had dealings with could not wait to crawl under the Berlin Wall. Alice and Fran and the rest here, do relieve us of your ecological footprints here and head for Byeloruss, where flats with total living spce less than that of your present living rooms (like that of my mate at Warsaw Uni in the 1970s) are still all the rage, and with zero private enterprise of any description to sully the view from your miniscule windows. Enjoy!

  3. @Charlie
    Id like to see some evidence of your population statistics for “greater london” Charlie
    This is what I have.
    http://www.demographia.com/dm-lon31.htm
    Comparing 1911 or 1939 to 2001 – I dont see much eveidence at all of massive population increases in Greater London
    So perhaps you need to proceed on a different point eg that usage has risen without any massive increase in population. There are stats to 2009 also – I found them yesterday and I also see no evidence of “massive population increases” there.
    As regards privatisation of the London Underground (in particular maintenance of…)

    “In January 2003 the Underground began operating as a Public-Private Partnership (PPP), whereby the infrastructure and rolling stock were maintained by two private companies (Metronet and Tube Lines) under 30-year contracts, while London Underground Limited remained publicly owned and operated by TfL.”

    http://en.wikipedia.org/wiki/London_Underground#Public_Private_Partnership

    Now Charlie…as I see it a major problem with such PPS is that the private firms usually prove only to happy to wallow in the revenue but when it comes to maintenance of infastructure they often claim bankruptcy, then sue governments, before they will part with a penny.

    and public spending on maintenance of infrastructure is what is not happening in many nations (the US, the UK, even Australia) because of silly people who want to shrink government investment on the grounds that the “private sector” does things so much better.. (better doesnt mean quality and better can mean faster at getting away with taxpayers money ).

    That “private better than public” line is a complete crock Charlie.

  4. Your argument of “crowded trains” may have been better pursued not along massive increases in population numbers, which dont exist, but on the nature of peoples work and where it is located…and where they have to travel to get to work.

    Has the great neoliberal dream killed off small businesses in outer regions of London, and concentrated production and employment in the hands of only larger more affluent employers (one can imagine the gleaming multistorey towers of the financial districts at this point).

    I could argue that globalisation and failed free market neoliberal policies has concentrated work in inner cities Charlie and that may be what is crowding your trains.

  5. The “global financial crisis was caused by some combination of the Community Reinvestment Act, Fannie/Freddie, and the stranglehold on US political power held by the Clintons in the early 2000s.”

    This was also the line pushed by Laurence Fisher at the Macquarie course I just did on macro policy. All DSGE. Time set aside especially to pour derision on Steve Keen.

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