The New York Times tries to whitewash Democratic responsibility for the housing disaster in today's editorial "Misplaced Blame" by holding that the Community Reinvestment Act is blameless for the problems that beset America. The Community Reinvestment Act was signed into law by Jimmy Carter in 1977. The Times editorial states that it is hard to fathom how a law signed 30 years ago is certainly partly (if not mostly) responsible for the crisis we have now. Well, first of all, the Act was made more potent when Bill Clinton, in 1999, beefed up its provisions and enforceability so the thirty -year statue of limitations that the Times creates out of thin air is not applicable. Secondly, does the Times understand economics? When house prices are in a bubble -- as they have been for many years -- problems do not surface. Inflation protected unqualified homebuyers from their own mistakes. Low interest rates also helped protect mortgages from defaulting. However, economics...(Read Full Post)