20/20 subprime-sight
Martin Eakes of the Center For Responsible Lending recently distributed a press release in which he reacts to President Obama’s plan to fix the housing crisis that plagues America. Nothing like damage control for the image after your business was directly involved in causing the subprime mortgage crisis to begin with.
Let’s assume Mr. Eakes is generally contrite about his past dealings in the subprime market that former associate Herbert Sandler knows too well. Unfortunately, he has nothing to say about it in his most recent press release.
Give credit where credit is due
Eakes begins by riding the wave like any good politician:
The housing plan announced today represents a huge step forward for the entire country, and includes responsible and effective actions to reduce the massive foreclosures that triggered today’s economic crisis. It represents an essential and overdue investment in correcting the results of bad lending and poor risk management. And it will benefit households from across the economic spectrum, providing new hope for a future with stronger communities and a stronger economy.
The foreclosures that triggered today’s economic crisis? No, the foreclosures are the effect of the real cause. Mind you, foreclosure in turn serves as a cause themselves which produce a spiderweb of other negative economic effects. But let’s not forget the initial cause of this American Real Estate blast crater. That would be the subprime lending in which ACORN, Self-Help, Inc. (Eakes’ organization) and the Community Reinvestment Act blackmailed banks into participating. That’s bad lending and poor risk management, plain and simple. Racism had nothing to do with it. Racism was their cause celebre; such political correctness destroyed America’s economy and put people out of their homes. Not payday loans, Mr. Eakes. CLICK HERE for more on Martin Eakes in Wonderland…
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You have to love people like Martin Eakes. He gets to condemn the financiers who made subprime loans irresponsibly available…which he lobbied to get them to irresponsibly lend!