Crash due to poor people....

[RadioRaheem84]

I watched Sean Hannity's interview with Michael Moore about ten minutes ago and I noticed that Hannity blamed the housing bubble crash on the Community Investment Act and the government forcing banks to lend to people who couldn't afford housing. He faults this as the main reason for the crash.

Moore, of course, didn't have a right counter argument so I wanted to know if there was one at all?

[bailey_187]

"i'm not a hunter but im told that in places like the artic where indigenous people might hunt a wolf, theyll take a blade and theyll put blood on the blade and stick the handle in the ice so only the ice in pertruiding, and wolf will smell the blood and think its something to eat and he'll like the blade and he cuts his tounge and it bleeds and he'll drink and he thinks hes really having a meal and he licks and licks until he kills himself" - Chairman Omali

thats what the banks did with the loans, working people saw the rich people have a house, why cant i have a house? the rich people have a car, why cant i have car? and they thought that the loans and cheap credit was something that was actually bringing benefit to them but their hurting themselves just like the wolf that was dying without knowing. But instead of blaming the hunter for putting the handle in the ice, what happens is the wolf gets blamed for trying to live.

Chairman Omali's anecdote doesnt work exactly but oh well.

The thing with the Community Investment Act argument is that in Europe we had a similar crisis, yet no CIA.
Also, why could people not afford a house in the first place? lack of profitable chances in productive capitalism led capitalists to invest in housing bubbles.
Richard Wolff and David Harvey are good for this.

[PRC-UTE]

I watched Sean Hannity's interview with Michael Moore about ten minutes ago and I noticed that Hannity blamed the housing bubble crash on the Community Investment Act and the government forcing banks to lend to people who couldn't afford housing. He faults this as the main reason for the crash.

Moore, of course, didn't have a right counter argument so I wanted to know if there was one at all?

basically that was just one small part of it, and it's debatable how much a part it was- there are studies about the CI Act claiming that many paid back their loans.

anyway, bad debt was bundled and sold as investments. a few lower income people buying houses didn't create the massive bubble that burst.

[RadioRaheem84]

David Harvey, really? Any links?

[bailey_187]

his website and look for his speech at Marxism 2009 (they sell it at http://www.bookmarksbookshop.co.uk/cgi/store/bookmark.cgi )

[fabiansocialist]

I watched Sean Hannity's interview with Michael Moore about ten minutes ago and I noticed that Hannity blamed the housing bubble crash on the Community Investment Act and the government forcing banks to lend to people who couldn't afford housing. He faults this as the main reason for the crash.

Moore, of course, didn't have a right counter argument so I wanted to know if there was one at all?

"Community Investment Act" is racist euphemism for black and Hispanic people being given loans, which these racists then claim they couldn't pay back. I don't have the links anymore, but empirically this is not correct. Moore is a buffoon with no ideological background. One source I might indicate is John Bellamy Foster's articles and reviews at monthlyreview.org. This was a systemic financial collapse that was three decades in the making. Blaming subprime lending is like blaming the last straw that broke the camel's back.

[Tatarin]

Sean Hannity isn't even human. It's a thing created by some failed experiment. It [Hannity] pretends to be human. It studies them, their behavior, in order to be like them. But it never will.

[Irish commie]

This idea is just trying to suggest there isnt any fundamental with the capitalist sytem which leads to booms and busts and that will eventually lead to its destruction and that it must be down to someone in governement makign a mistake whan anyone who has read marx about the declining rate of profit will know that this is bullshit.

[Dimentio]

Well, Johan Norberg claims its "everyone's fault" except the economic system, which is supposedly perfect. I think this has mostly to do with scapegoating.

[noway]

its our fault.... I wish we learned how to live in tents, and eat and drive less