Bsi 1,377.62 -17.23 -1.24%
The Index ends the day lower on the meme that the economic downturn is being caused by minorities.
Guess who's getting blamed?
What is now a credit crisis is still being blamed on sub-prime loans to blacks and Hispanics, brought about, in theory, because of a "pie in the sky" Democratic program brought in during the Carter administration. Don't believe the hype. From an article on Slate.com:
These arguments are generally made by people who read the editorial page of the Wall Street Journal and ignore the rest of the paper—economic know-nothings whose opinions are informed mostly by ideology and, occasionally, by prejudice. Let's be honest. Fannie and Freddie, which didn't make subprime loans but did buy subprime loans made by others, were part of the problem. Poor Congressional oversight was part of the problem. Banks that sought to meet CRA requirements by indiscriminately doling out loans to minorities may have been part of the problem. But none of these issues is the cause of the problem. Not by a long shot. From the beginning, subprime has been a symptom, not a cause. And the notion that the Community Reinvestment Act is somehow responsible for poor lending decisions is absurd.Analysts here believe blacks will survive this slight. We all know who gets blamed when something goes missing. It just happened, this time it was 30% of the Dow.
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