Flashback: Conservative media games in housing crisis
MEMORANDUM
To: Interested Parties
From: Jessica Levin, Media Matters for America
Re: Flashback: Conservative media games in housing crisis
Date: Wednesday, February 18, 2009
When economists and other experts address who is at fault for the housing and financial crisis, the emerging consensus is that irresponsible practices by lenders and investors and lax oversight by government regulators are to blame. However, many in the media have told a different story.
As recently as February 17, in a Hardball discussion of who was to blame for the financial crisis, CNBC's David Faber said to host Chris Matthews that he was "sure" there were plenty of Hardball viewers "who want to go back to the Community Reinvestment Act, and say that Bill Clinton was certainly one of the engines behind tightening that act, make an even stronger case for banks to be lending to minorities."
Indeed, Media Matters for America has documented numerous media figures attempting to lay the blame for the crisis on the proponents of the expansion of affordable housing, attacking the Community Reinvestment Act (CRA) and congressional Democrats. On the day that President Obama announces his plan to stabilize the housing market, Media Matters thought it would be helpful to bring to your attention our research refuting these attacks.
CLAIMING THAT THE 1977 COMMUNITY REINVESTMENT ACT FORCED LENDERS INTO IRRESPONSIBLE LENDING
Media Matters has documented media figures claiming that the CRA and efforts to expand affordable housing to minorities and low-income people are at least in part to blame for the home foreclosure crisis. However, this argument has been refuted by Federal Reserve Chair Ben Bernanke, who stated in a letter to Sen. Robert Menendez:
"Our own experience with CRA over more than 30 years and recent analysis of available data, including data on subprime loan performance, runs counter to the charge that CRA was at the root of, or otherwise contributed in any substantive way to, the current mortgage difficulties."
In addition, countering the argument that CRA forced banks into making "risky" subprime loans, experts have said that approximately 80 percent of subprime loans were offered by financial institutions that are not subject to the CRA, and, in Bernanke's words, "The CRA statute and regulations have always emphasized that" the lending activities it encourages "be 'consistent with safe and sound operation.' " Additionally, Janet Yellen, president and CEO of the Federal Reserve Bank of San Francisco stated that "studies have shown that the CRA has increased the volume of responsible lending to low- and moderate-income households."
On Fox, Barnes, Krauthammer echoed conservative claim that CRA played key role in subprime crisis
Faced with economic turmoil, media conservatives turn to class warfare
Hannity baselessly blamed Democrats, CRA for financial crisis
Fox News' Baier advanced conservative attacks on CRA, repeated falsehood about Rep. Frank
Media conservatives baselessly blame Community Reinvestment Act for foreclosure spike
ACCUSING CONGRESSIONAL DEMOCRATS OF OPPOSING STRENGTHENING OVERSIGHT OF FANNIE AND FREDDIE
Several media figures have blamed the mortgage crisis on congressional Democrats and Rep. Barney Frank, in particular, accusing them of opposing stricter oversight of mortgage giants Fannie Mae and Freddie Mac. In fact, a New York Times article on how "the story of" the mortgage crisis "is partly one of [former President George W.] Bush's own making" reports that it was Bush who "insisted that Fannie Mae and Freddie Mac meet ambitious new goals for low-income lending." Frank, the senior Democrat and now chairman of the Financial Services Committee, has repeatedly supported legislation to strengthen oversight over Fannie and Freddie. After Democrats retook control of Congress, they passed a bill that strengthened oversight of Fannie and Freddie in 2008.
Scarborough falsely suggested Frank is only "now ... saying some people should just rent"
O'Reilly falsely claimed Frank "wanted to give mortgages to everybody"
O'Reilly falsely claimed that Rep. Frank "sat by" while "Freddie Mac and Fannie Mae made bad loans"
For more information on the media's coverage of the housing crisis, please visit www.mediamatters.org
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Gops lie. They have to. Lord knows the facts aren't doin' them any favors.
Gops lie. It's who they are. It's what they do.
I'm beginning to think that instead of reinstating the Fairness Doctrine, they should institute an "Accuracy in Broadcasting" Doctrine. Anyone who makes a stratement on radio and/or TV must be able to back it up. If it's proven to be a lie, it goes into a central database - three documented lies, and the liar is banned from appearing on any radio or TV program for 30 days. 60 days for the second offense, and a lifetime ban for the third offense.
THAT would ensure people know what they're talking about ont he air before they open their pieholes.