CNN demonstrates that they don’t understand what subprime means

posted at 6:00 pm on October 9, 2008 by Ed Morrissey

CNN attempts a Fact ChectTM on John McCain, but ends up making themselves look foolish. Alina Cho chides McCain for distorting Barack Obama’s support for subprime lending, but only demonstrates that she doesn’t understand the concept:


But here’s what McCain didn’t talk about. Obama went on to say that greed changed all of that. Certain lenders and brokers, quote, began to lower their standards, Obama said, and borrowers — well, they ended up in places they could never afford. So Obama definitely spoke out against the practice.

Well, that’s exactly what subprime lending was. The entire subprime lending structure intended to get loans to people who didn’t qualify for them by lowering lending standards. In fact, thanks to the CRA and groups like ACORN, lenders got accused of racism if they didn’t lower their standards — and so long-established prerequisites for mortgages like income standards and down payments disappeared.

And where did the greed arise? It came from Congressional mandates to have Fannie Mae and Freddie Mac buy up subprime loans to provide short-term profits to the lenders lowering those standards. Who pushed those mandates? Obama’s own party. Who accused regulators like Armando Falcon of racism for blowing the whistle on the bad financial decisions at Fannie and Freddie resulting from the massive underwriting of these loans? Obama’s own party.

Cho needs a fact checker of her own. McCain’s point was perfectly valid. The financial crisis came from government deliberately distorting the lending market to push people into subprime loans who could not afford the houses they were buying — and the advocates of that policy counted on “greed” to make it work. In fact, they built it into the program.

Addendum: The video seems to have some problems in loading. If you can’t get it to work, here’s the link to the CNN page.


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I hope the bathtub is big enough.

Mcguyver on October 9, 2008 at 6:03 PM

Who cares what this skank says?

bill30097 on October 9, 2008 at 6:03 PM

Cho is a liberal nitwit, of course. What part of “sub-prime” doesn’t she get?

Jaibones on October 9, 2008 at 6:04 PM

The problem is that McCain is not forcefully challenging and correcting these lies. He sits down with Charlie Gibson and doesn’t take the opportunity to explain the Fannie-Freddie issue or Obama’s ties to it even when Gibbie raises the issue! McCain is just rolling over. I am sick to my stomach.

D0WNT0WN on October 9, 2008 at 6:04 PM

Who cares what this skank says?

bill30097 on October 9, 2008 at 6:03 PM

Bing.

Jaibones on October 9, 2008 at 6:05 PM

Ed, watch it, you’re a racist for even challenging Cho….

/sarcasm on

Mcguyver on October 9, 2008 at 6:05 PM

MALFORMED ERROR
The video you are attempting to embed does not exist.
Please check your URL and try again.

Sultry Beauty on October 9, 2008 at 6:05 PM

CNN = MISLEADING. *Whoop – BOINK!!!* sound effect.

That’s the kind way of saying that they are lying sacks of sh*t.

wise_man on October 9, 2008 at 6:07 PM

CNN fact checks are ridiculous. They admit what McCain said was true, offer their OPINIONATED rebuttal, and then claim this opinionated rebuttal somehow makes the statement false

lodge on October 9, 2008 at 6:07 PM

God, I never want to hear the word “FactCheck” ever come out of the mouth of the MSM ever again… good lord…

ninjapirate on October 9, 2008 at 6:08 PM

Didn’t Obama say in 2007 that sub prime loans were a good thing?

lorien1973 on October 9, 2008 at 6:09 PM

Yeah, I was looking for one of those good subprime loans.

Vashta.Nerada on October 9, 2008 at 6:09 PM

I never want to hear the word “FactCheck” ever come out of the mouth of the MSM ever again… good lord…

ninjapirate on October 9, 2008 at 6:08 PM

That’s the obsolete media

Vashta.Nerada on October 9, 2008 at 6:10 PM

The only stocks on the rise are those associated with scuba diving…

TheBigOldDog on October 9, 2008 at 6:11 PM

She doesn’t need a fact checker when you already use a crap checker. She knows it’s crap, and checks to make sure it is crap.

bloggless on October 9, 2008 at 6:11 PM

I would love to know the collective IQ of the CNN on air talent. If you leave out Wolf Blitzer I bet their average is something well south of normal.

Elizabetty on October 9, 2008 at 6:11 PM

The only stocks on the rise are those associated with scuba diving…

TheBigOldDog on October 9, 2008 at 6:11 PM

I’d think gun stocks were up too, no?

lorien1973 on October 9, 2008 at 6:12 PM

Haaaaaaaaa I’d like to see Obama say that subprime lending is NOT a good idea.

Not lending to poor people is racist, remember?

Riposte on October 9, 2008 at 6:12 PM

Sadly, the people who watch CNN won’t get it either. Cho is just dishing the usual pap to the Obama Koolaid drinkers and other dumbed down, mindless followers of the pop trends, certain that her words will have the desired effect.

eaglesdontflock on October 9, 2008 at 6:13 PM

Also with the government artifically inflating the housing market prices went up. as prices went up but wages stayed the same the faniacial system vreated ARM’s so those with lower incomes could continue to buy the higher priced homes. ARM’s would never had been invented if the poor people did not need to take loans.

unseen on October 9, 2008 at 6:13 PM

More cool points for the Garbage Pail Kids.

m064404 on October 9, 2008 at 6:14 PM

And the sad thing is that the grand majority of our population mistakes this crap for real news.

*eats*

Grue in the Attic on October 9, 2008 at 6:15 PM

The problem is that McCain is not forcefully challenging and correcting these lies. He sits down with Charlie Gibson and doesn’t take the opportunity to explain the Fannie-Freddie issue or Obama’s ties to it even when Gibbie raises the issue! McCain is just rolling over. I am sick to my stomach.

D0WNT0WN on October 9, 2008 at 6:04 PM

I agree. Going negative doesn’t work when you do it meekly.

John McMilquetoast.

BuckeyeSam on October 9, 2008 at 6:15 PM

Hey, the guy in Wisconsin who begged McCain was a black guy in a suit.

BuckeyeSam on October 9, 2008 at 6:16 PM

Cho is a liberal nitwit, of course. What part of “sub-prime” doesn’t she get?

Jaibones on October 9, 2008 at 6:04 PM

That would be all of it!!

There is almost a perfect vacuum between her ears and about 45 psi beneath her bra. Hence a job as a reporter for CNN.

Bubba Redneck on October 9, 2008 at 6:18 PM

Yeah, I was looking for one of those good subprime loans.

Vashta.Nerada on October 9, 2008 at 6:09 PM

LMAO!! Me too!

sloopy on October 9, 2008 at 6:18 PM

Alina Cho chides McCain for distorting Barack Obama’s support for subprime lending, but only demonstrates that she doesn’t understand the concept

heh, reminds me of the Don Henley song, “Dirty Laundry.”

“I couldn’t make it as an actor so I wound here, I only have to look good I don’t have to be clear…”

Liberty or Death on October 9, 2008 at 6:19 PM

MALFORMED ERROR
The video you are attempting to embed does not exist.
Please check your URL and try again.

Sultry Beauty on October 9, 2008 at 6:05 PM

Nothing to see here..

Same turds, just another day.

Mcguyver on October 9, 2008 at 6:19 PM

Well, that’s almost as bad as Shepard Smith, goin’ on about how “somebody’s getting rich in all this volatility.”

Then, his “guest” goes on about, “for every seller, there’s a buyer”

I’ve never seen such total ignorance of how the markets work.

franksalterego on October 9, 2008 at 6:19 PM

CNN Factcheck…

Is that like Jumbo Shrimp?

or Military Intelligence? or Intelligence Officer?

or House Ethics Committee?

Some words just should not go together…

Romeo13 on October 9, 2008 at 6:20 PM

She’s damaging the stereotype of Smart Asians ( esp regarding math ). So she’s………..racist!!

I love it when these Media Morons look straight into the camera and speak at a sub-high school level

clueless……….

Janos Hunyadi on October 9, 2008 at 6:22 PM

Strange. The link worked for me at first, and now I see the same error as everyone else up top. But it did work.

wise_man on October 9, 2008 at 6:24 PM

I forgot about this article I did on my old blog

ACORN Housing Corporation launches non-profit mortgage brokerage

ACORN Housing Corporation launches non-profit mortgage brokerage with CitiMortgage, Bank of America, First American Title Insurance Company, and Fannie Mae to help low- and moderate-income families find safe, affordable mortgages in Florida

ACORN Housing and CitiMortgage, Bank of America, First American Title Insurance Company, and Fannie Mae announced today the launching of a new non-profit mortgage brokerage called Acorn Housing Affordable Loans, LLC, to help qualified borrowers enjoy the benefits of homeownership throughout Florida. Additional offices will be launched in other states in the coming months. The new mortgage brokerage will also help homeowners faced with resetting adjustable rates that may make their current home mortgage payments unaffordable.

William Amos on October 9, 2008 at 6:25 PM

Cho is a liberal nitwit, of course.
Jaibones on October 9, 2008 at 6:04 PM

True, but if you give her a brain she might be hot.

Yeah, I said it.

Brass Pair on October 9, 2008 at 6:26 PM

Obama was against it only after the damage had been done. Prior to that, he was so enthusiastically for it that he was on the ACORN legal team that sued Citibank to force it to take toxic loans in Chicago.

From the New York Post:

CRA was meant to encourage banks to make loans to high-risk borrowers, often minorities living in unstable neighborhoods. That has provided an opening to radical groups like ACORN (the Association of Community Organizations for Reform Now) to abuse the law by forcing banks to make hundreds of millions of dollars in “subprime” loans to often uncreditworthy poor and minority customers.

Any bank that wants to expand or merge with another has to show it has complied with CRA – and approval can be held up by complaints filed by groups like ACORN.

In fact, intimidation tactics, public charges of racism and threats to use CRA to block business expansion have enabled ACORN to extract hundreds of millions of dollars in loans and contributions from America’s financial institutions.

unclesmrgol on October 9, 2008 at 6:26 PM

Yeah, I was looking for one of those good subprime loans

ditto that!!!! hook me up.

kareyk on October 9, 2008 at 6:27 PM

Read the whole page it includes a story of how NYC used HUD money to buy housing then GAVE it to ACORN to resell.

William Amos on October 9, 2008 at 6:27 PM

Communist News Network

Terrye on October 9, 2008 at 6:27 PM

Voter: Senator McCain it is such an honor to be here with both of you this morning. I am a realtor, witnessing first hand the effect the mortgage crisis has had on many people’s lives. Will you assure us, that as president, you will take immediate action to investigate, prosecute, and names the names of the people actually responsible [crowd goes crazy].

McCain: I will. And it is already a matter of record, that members, Democrat members of Congress, fought against reform, and it’s a matter of record in hearings that they said in hearings that everything was fine. Senator Obama said a year ago that these kinds of sub-prime loans were quote fine with him. And the fact is, that the same people that are now claiming credit for this rescue are the same ones that were willing co-conspirators in causing the problem that it is [crowd goes crazy]. And you know their names. And you will know more of their names – Congressman Barney Frank and Senator Chris Dodd [Booo] are two of them.

funky chicken on October 9, 2008 at 6:28 PM

Buckeye:

McCain did a whole speech today on FM and Dodd and Frank etc. He is not rolling over. The truth is he might well have said a lot of things to Gibson that just never made it to the air.

Terrye on October 9, 2008 at 6:29 PM

One more mediocre twit who thinks that a fresh degree from journalism school makes her wise enough to lecture — no, inform — the rest of us.

Every journalism course should have a mandatory class in humility where the students are taught that there are a lot of people out there who are smarter than a freshly-minted journalism grad.

Cicero43 on October 9, 2008 at 6:30 PM

Yeah, I was looking for one of those good subprime loans

ditto that!!!! hook me up.

kareyk on October 9, 2008 at 6:27 PM

Absolutely. We don’t want bad subprime loans, only the good ones. LOL!

sloopy on October 9, 2008 at 6:31 PM

CNN Factcheck…

Is that like Jumbo Shrimp?

or Military Intelligence? or Intelligence Officer?

or House Ethics Committee?

Some words just should not go together…

Romeo13 on October 9, 2008 at 6:20 PM

You left out fornicating for chastity.

MB4 on October 9, 2008 at 6:34 PM

Aw, c’mon Ed. Didn’t you see the 5 minute Anderson Cooper piece where they actually brought up Ayers?

That alone is enough to get them a “Truth-Free News Card” for the next 60 years.

I mean, next you’re going to want them to address the fact that the Bush Administration is not the blame for the mortgage crisis, and in fact tried to stop it. That would make the CNN Headquarters in Atlanta collapse.

MadisonConservative on October 9, 2008 at 6:36 PM

So… Obama said that subprime lending was a good idea – when Democrats implemented it. But then subprime lending (somehow, magically) changed from a good idea into a bad idea when the people who were already giving subprime loans kept doing the exact same thing – but started to feel “greedy” while they did it.

OK, obviously the above statement is sub-moronic. But in LiberalSpeak, it all sounds perfectly reasonable. Reality is irrelevant; all that matters is how people FEEL. And if the evil Republicans didn’t make people feel bad about what they were doing, then nothing anyone ever did would be wrong.

logis on October 9, 2008 at 6:41 PM

Hey, the guy in Wisconsin who begged McCain was a black guy in a suit.

BuckeyeSam on October 9, 2008 at 6:16 PM

CNN is at this moment trying to track this man down for a follow-up interview.. All they know for sure at this point is his first name is Tom.

fogw on October 9, 2008 at 6:44 PM

Check this fact Cho, ‘You are an idiot’

Wade on October 9, 2008 at 6:48 PM

Her laugh cackle at the end gives her away.

Here is a ‘fact’ she needs to check (from the Wm Amos link):

“The city is taking a huge step forward in figuring out how to address the housing crisis,” said Peter Kuhns, who is an organizer for the Assn. of Community Organizations for Reform Now, or ACORN, which is a group of low-income residents.

How about “Obama campaign funded, organized crime syndicate, communist group intent on destroying our constitutional voting rights”?

fred5678 on October 9, 2008 at 6:49 PM

What part of “sub-prime” doesn’t she get?

The “sub” part and the “prime” part.

Not once does she talk about the greed of those who signed on for more mortgage than they could possibly afford. It was never a good idea but the voices saying that were silenced by the lenders and the FMs.

highhopes on October 9, 2008 at 6:55 PM

My factcheck says Cho is the one who is misleading the audience. And, didn’t you just get the feeling that she was enjoying it a bit too much?
sarahpalinrocks.us

kyslugbug on October 9, 2008 at 6:56 PM

So Obama definitely spoke out against the practice.

Obama speaks out against a lot of things…after he, himself, facilitates them.

whitetop on October 9, 2008 at 6:57 PM

Unbelievable….I agree she should know what she is reporting before she reports.

becki51758 on October 9, 2008 at 7:01 PM

When was the last time that CNN fact-checked Obama and found his claim “misleading”?

drjohn on October 9, 2008 at 7:02 PM

She’ll never know what an idiot she is…liberals live in a bubble…

CCRWM on October 9, 2008 at 7:06 PM

So here we are. MSM openly campaigning for Obama during “News” broadcasts. Yeesh

ronsfi on October 9, 2008 at 7:14 PM

Pot: meet kettle

I aghree fully with your argument here, however I’m a habitual nitpicker and this sentence:

“distorting the lending market to push people into subprime loans who could not afford the houses they were buying”

from your comment misses the meaning of subprime too.

“subprime” refers to the credit status of the borrower – so a more technically correct version might read:

“distorting the lending market to push banks into lending on subprime credit – issuing loans to people who could not afford the houses they were buying.”

Paul Murphy on October 9, 2008 at 7:21 PM

What about mike volpe and his counter arguments to all this?

aikidoka on October 9, 2008 at 7:27 PM

You know CNN has turned into that person you knew in high school who was cool, smart, down to earth, never pulled any punches and you loved to spend time with. Then went away to college had their head filled with ideological crap and came back as the pretentious pseudo intellectual douche bag that spends most of their time pointing out what is wrong with the world, That everyone avoids and wishes would just shut the hell up.

Dreadnought223 on October 9, 2008 at 7:37 PM

In addition to being dumb as hell, the woman is and always has been a leftist shill. Way to go CNN.

rplat on October 9, 2008 at 7:37 PM

Hmmm….subprime, sub + prime, as in lower than the prime, as in less than the ideal…I mean, I know I majored in English, but even a dingbat like me gets it.

Pope Linus on October 9, 2008 at 7:39 PM

Alina Cho is the embodiment of subprime, in fact she gives chuck a run for the roses, absolutely pathetic!

Healing you will feel!

dmann on October 9, 2008 at 7:58 PM

Subprime intellect.

profitsbeard on October 9, 2008 at 8:00 PM

How does this feed my children?

Mojave Mark on October 9, 2008 at 8:35 PM

ACORN AND OBAMA = CRIMINAL ENTERPRISE

byteshredder on October 9, 2008 at 10:24 PM

what an idiot….and the rest of the idiots on the network were probably nodding in agreement like trained monkeys.

wildweasel on October 9, 2008 at 10:43 PM

sub-brain

bloggless on October 9, 2008 at 11:29 PM

Have you noticed that whenever the Fed lowers the federal funds rate as they did this week, the MSM describes it with the euphemism as lowering “a key interest rate”? That’s because they don’t understand economics. I don’t think that any of them ever took Econ 101.

tomsky on October 10, 2008 at 12:03 AM

One more mediocre twit who thinks that a fresh degree from journalism school makes her wise enough to lecture — no, inform — the rest of us.

Every journalism course should have a mandatory class in humility where the students are taught that there are a lot of people out there who are smarter than a freshly-minted journalism grad.

Cicero43 on October 9, 2008 at 6:30 PM

If only it were so….

Problem is, their education taught them what to think, not how to think. Which makes them very nearly ineducable.

theregoestheneighborhood on October 10, 2008 at 9:21 AM

Best article I have read that sums up the sub-prime mess going back to the Carter Administration. Link from the Pottstown PA Mercury

http://www.pottstownmercury.com/site/news.cfm?dept_id=635485&PAG=461&rfi=6&newsi
d=20157307

libertas eternus on October 10, 2008 at 9:26 AM

True, but if you give her a brain she might be hot.

Brass Pair on October 9, 2008 at 6:26 PM

Doesn’t that leave an ugly scar across the forehead?

DarkCurrent on October 10, 2008 at 9:29 AM

She is an idiot like all liberals.

pukara61 on October 10, 2008 at 10:01 AM

Yeah well she sounds convincing to a stupid person who will watch that & say to themselves “Yeah. That’s right.” Right after they crack open another beer & turn to NBC,ABC etc to hear more of the same crap.
I wish there were more intelligent people in this country who could figure out that this stuff is suck gobbledygook physchobabble speak.

Badger40 on October 10, 2008 at 12:05 PM