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You may have had this video forwarded to you recently.  It is an attempt to pin the financial crisis on Democrats because of the Community Reinvestment Act of 1977.

It is a pretty silly claim, but it is easy to confuse people with a deceptive youtube video when the truth about this financial crisis is very hard to understand.  Not everyone can be an economist.

I've seen lots of people post about the video above and asking how to refute it, it's being sent around in chain mails.  

The best way to respond to a deceptive Youtube video is with a better, truthful one.  It takes the pain out of having to type out the explanation yourself.

I think this one is a slam dunk.

It does a nice job of explaining the crisis while at the same time pointing some serious blame in the direction it belongs, with McCain's economic adviser, Senator Gramm.

The video was produced by the people behind KnowMcCain.com which is another cool little site to send around.  It produces a random little known McCain fact for each click.

Originally posted to furiousxxgeorge on Thu Oct 02, 2008 at 10:28 AM PDT.

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Comment Preferences

  •  Where is your tip jar! (4+ / 0-)

    I give this diary an enthusiastic 2 thumbs up!! Factual, to the point and the sound track is killer.

  •  Perfect soundtrack to a helpful video-thx! nt (2+ / 0-)
    Recommended by:
    furiousxxgeorge, DrFitz

    Palin: Serving up bullshit with unblinking confidence!

    by ldvisavis on Thu Oct 02, 2008 at 10:38:11 AM PDT

  •  The problem is not with CRA, but the groups that (2+ / 0-)
    Recommended by:
    furiousxxgeorge, DrFitz

    used CRA to pressure lending institutions into lowering the qualifications for a loan, and to the other institutions which allowed greed to dictate their actions and, last but not least, the government which "urged" Fanny and Freddie to purchase the packaged loans. There is plenty of blame to go around.

    •  And yet for 20 years, the banking system (1+ / 0-)
      Recommended by:
      furiousxxgeorge

      functioned just fine. Until the Gramm-Leach-Bliley Act in 1999. Then 9 years after removing the banking regulations put in place after the great depression, the banking system crashes again. Hmmmm, 20 years no problem, then in 9 years catastrophe.

      By the way, we are not funding a $700 billion bailout because of sub-prime loans. That's over. Sub-prime defaults crested this past Spring. Now the Alt-A mortgages are defaulting; these will crest next year. Then the prime mortgages start moving to their default peak in 2010. Unless of course there is intervention of some type by some entity.  And Alt-A and prime mortgages are much much bigger categories of loans. And I'm not even gonna talk about commercial real estate.

      Nope, this video is good to go.

  •  Thanks for sharing this (2+ / 0-)
    Recommended by:
    furiousxxgeorge, publicv

    The CFTC deregulation by Gramm was even more important to really crashing things, but this focus is better and easier to follow for low info voters.

    McCain/Palin = Unstable/Unable

    by DrFitz on Thu Oct 02, 2008 at 10:40:27 AM PDT

  •  great! (1+ / 0-)
    Recommended by:
    furiousxxgeorge

    This is a really nice explanation of why division between types of banks is a good idea.  good music.
    If I knew how to do a tip jar, I'd recommend the diary.  

  •  Farmer Brown got a little pinched (0+ / 0-)

    waiting for his harvest so he went to the town bank to ask for a loan.
    The loan officer asks,   "Do you have any, collateral?"
    "Collateral?" replies Farmer Brown.
    "Yeah, you know somethin' that's worth some money"
    Farmer Brown thinks a minute and says "Well, I have some cows."
    "Great," says the banker, "bring me your cows and I'll keep them 'til you pay back your loan."
    "Ok" says Farmer Brown and off he goes, gets his cows and takes his loan.
    Well it turns out Farmer Brown has an excellent harvest, sells his crops and comes in to town with a wad of cash to pay off his loan and retrieve his cows.
    The banker's eyes lit up at Farmer Browns wad of cash as he peeled off a few bills to pay his loan.
    As Farmer Brown collected his cows and headed out of town the banker became agitated.  He followed Farmer Brown down the road.
    "Farmer Brown, Farmer Brown"
    "What is it?"
    "Aren't you going to put your money in the bank?"
    "Well, no."
    "Why not?. I can give you 2 percent interest."

    "Yeah, but everybody knows you ain't got no cows."

    "it's the fundaments of the economies is completely backasswards, stupid"

    by ReluctantProphet on Thu Oct 02, 2008 at 10:50:55 AM PDT

  •  Digg it... (0+ / 0-)

    ... here.

    That's a great video.  I'm glad someone made it.  Thanks for bringing it to our attention.

  •  One-line answer: (1+ / 0-)
    Recommended by:
    furiousxxgeorge

    Loans under the CRA have slightly better-than-average repayment rates.  End of argument.

    But this is a terrific video.  Thanks.  The soundtrack actually helps a lot -- makes it much easier to concentrate on the argument!

    Now, where's the darned tipjar?

    Kingman, Barstow, San Bernardino!

    by jem6x on Thu Oct 02, 2008 at 11:02:22 AM PDT

  •  Loved it. Stop ventriloqisting the blame to (1+ / 0-)
    Recommended by:
    furiousxxgeorge

    some other body.  They did it.  

    42.7% of all statistics are made up on the spot. A Wrightism

    by publicv on Thu Oct 02, 2008 at 11:03:10 AM PDT

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