In one of the more comical efforts to characterize the current financial crisis as something other than a massive market failure, some conservatives have decided that the real blame lies not with greedy Wall Street financiers, but with the Community Reinvestment Act, a 1977 law aimed at getting banks to extend credit to residents of poor communities. Now, you might think it was silly to suggest that a law enacted in 1977 caused a massive increase in subprime lending followed by a financial meltdown over a quarter century later. And you'd be right. Robert Gordon debunks this pathetic argument.

Eduardo M. Peñalver is the Allan R. Tessler Dean of the Cornell Law School. The views expressed in the piece are his own, and should not be attributed to Cornell University or Cornell Law School.

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