100,000 Reasons The CRA Didn't Cause The Housing Crisis

Yesterday I mentioned the vampire-like lie that the "Community Reinvestment Act caused the housing collapse" would not die, as John Carney brought it up again. I gave Barry Ritholtz the kill yesterday, and today he's put up $100,000 of his own money to debate any and all comers on this.

Well, its time to put up or shut up: I hereby challenge any of those who believe the CRA is at prime fault in the housing boom and collapse, and economic morass we are in to a debate. The question for debate: “Is the CRA significantly to blame for the credit crisis?”

A mutually agreed upon time and place, outcome determined by a fair jury, for any dollar amount between $10,000 up to $100,000 dollars (i.e., for more than just bragging rights).

The nonsense rhetoric blogged about has no cost to those pushing these discredited memes — but interferes in the societal attempts to understand how these problems arose and then how to fix them. Perhaps this will help clarify the issue by forcing those with partisan agendas to stand behind their claims.

Which of the many “CRA was a major factor” proponents have the courage of their conviction to step forward?

My money's on Barry. Big time. John Carney, Megan McArdle, Jim Pethokoukis, let's see your hands...

...Felix Salmon at Reuters reports that Carney wants to take up Ritholtz on his offer. Let the games begin.