Something old, something new (title in APA format)

The old...
I am sick of talking about the roots of the current economic crisis, but truthfully, I know that my opinion far outstrips my understanding, so this article by Doug Robinson enlightened me. (Yes, I know it's opinionated as well, but some of the points seem to fall in line with what Lucas says, so I tend to believe they lean towards the objective truth.) In the creation of the Community Redevelopment Act back in 1977, politicians were seeking to help people get homes that lived in crime-ridden areas where banks wouldn't loan money. The intent seems noble. However, according to the anonymous banker that Robinson interviewed, over time, government stiff-armed banks into lowering their lending standards. Next, government-backed Fannie Mae and Freddie Mac bought up many of these sub-prime loans, selling many of them to investment firms. Our classmate, Lucas, makes a good point in saying that greed on both sides fueled the buying of these government-secured loans. They were worthless, yet had the promise payout, so why not throw caution to the wind and buy them up before someone else got their hands on them? Government's intent was noble, but their implementation was extremely flawed. Sound financial principles should not be discarded. We have witnessed what happens when they are.


The new...
This story was encouraging. After his duplex went unrented for a few months, an anonymous landlord decided to house a family (affected by the economic downturn) with children, rent free, if they were committed to getting back on their feet. He also put $5,000 in furniture in the house, which the family will take with them when they leave. He is also providing them with a van to use. Other businesses helped out, decorating the place. Volunteers helped put furnishings together. A business owner remarked that she just had to get involved when she heard about the charitable venture.
Yes, this helps only one family, yet the goodwill spread by it (through capitalism, no less!) can have a domino effect. Way to go private sector!
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