I've been forwarded this video that purports Democrats, and specifically Barack Obama, are to blame for the housing crisis enough times now that I think it's time to take it down with some solid fact checking. Let's debunk it!
So, here are some of the main themes that need knocked down...
Claim: The Community Reinvestment Act (CRA) is the cause of all our troubles. It was passed during the Carter Administration and amended during the Clinton and Bush Administrations. It helped scary minorities get mortgages to buy homes.
Truth:
The Bush administration amended the legislation in 2005 to reduce the number of banks subject to regulation. This caused an increase in the number of subprime loans that were unregulated.
Claim: In 2005 Senator McCain co-sponsored S-190 that sought to reform oversight of Fannie and Freddie.
Truth:
McCain was not one of the original co-sponsors. He never used his maverickiness to reach across the aisle and help get this bill passed. He only became a co-sponsor 14 months after the bill was defeated as a political stunt because he decided to run for president.
Claim: Senator Dodd got a "sweetheart" deal on a loan.
Truth:
He's a Senator. He makes a very good salary and probably has a good credit score. He likely got a lower than average interest rate as a result.
What other outrageous lies and distortions can we debunk? My google-fu alone is only so strong; please fellow Kossacks, help me out in the comments!
UPDATE: Thanks to all who have left comments. I'm constantly amazed at what a thoughtful and well informed community we have here!