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Fed: Loans To Poor/Minorities Did Not Tank Economy

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Wingnuts have tried to pin blame for the economic meltdown on the Democrats by arguing that the root cause is that federal Community Reinvestment Act regulations forced banks to make too many mortgage loans to low-income people, African-American people, etc.

Today, Randally Kroszner, a Federal Reserve Board governor, has given a speech and said analyses conducted by the Fed and the Brookings Institution suggest that CRA-related loans have not performed noticeably worse than other bank mortgage loans.


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