The real estate crash was caused by people borrowing money they couldn’t afford to pay back when times got hard. Banks were ordered to lend the money to high risk borrowers or face discrimination lawsuits.
“The real estate crash was caused by people borrowing money they couldn’t afford to pay back when times got hard. Banks were ordered to lend the money to high risk borrowers or face discrimination lawsuits.”
That’s the core of the problem and that is on our government. Fannie, Freddie, FHA, Congress.
The thing that took that core problem and made it explosive was the bundling of the crappy mortgages into derivatives, taking bad loans and leveraging the heck out of them. That’s probably on Goldman et al.