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  Dave Wallace May 31, 2010 at 5:12pm

  The problem of subprime lending by the Mortgage Industry did not occur in a vacuum. It occurred under the close watch of the leadership of Fannie Mae, and Freddie Mac, where although it was stated that mortgage lending practices must be made on sound financial criteria and reserves at these institutions need to be increased, the progressives in Congress thwarted all efforts to do so. And indeed, the inevitible occurred and we are suffering the consequences. The only way we can get out of this mess, is to repeal the laws that allow this to occur, namely, the Community Reinvestment Act, which gives Community Organizations the standing to sue banks, and to stand in the way of the expansion of banks, then hold them hostage, and pull a ransom, which has been typically a set aside for borrowers that have no history of paying their bills on time, if at all. We will see the next economic collapse happen with even greater magnitude, if we don't change our laws which benefit bad behavior.