CEI Criticizes Center for American Progress

CEI Criticizes Center for American Progress

The Community Reinvestment Act is a Colossal Failure, CEI Analyst Says
October 02, 2008

Washington, D.C., October
2, 2008—A policy at the Competitive Enterprise Institute, a free market think
tank, today harshly criticized the
supposed “myth-busting” of the Center for American Progress’ Action Fund.

Michelle
Minton, a policy analyst at the
Competitive Enterprise institute and author of the paper The Community Reinvestment Act’s Harmful Legacy to the current crisis .
“To an extent it’s correct to say
that CRA isn’t the primary cause of today’s
financial problems,” says Minton.  “In conjunction with other misguided regulations
and the creation of a super-charged secondary market CRA fueled the reckless
behavior that caused today’s
problems” argues that the CRA
contributed

Minton doesn’t
blame borrowers or community groups for the problems, “Clearly the institutions
who recklessly purchased risky mortgage backed securities are at fault,” she
says. “Regulations intended to
increase the availability of credit combined with government guarantees pushed
institutions in the wrong direction.”

Minton’s paper The Community Reinvestment Act’s Harmful
Legacy, is available at http://cei.org/node/20524.

CEI
is a non-profit, non-partisan public policy group dedicated to the principles of free enterprise and limited
government. For more information about CEI, please visit our website at www.cei.org.