yet NOBODY is reporting how this started.
Banks were forced to make loans to unacceptable risks. The Politicians and activists that forced the risks did not think, at all. The politicians and activists did not and do not understand that banks do not have to keep the promisory note. banks sold those forced hih risk loans ASAP.
The banks then discovered if they used inflated prices they got more in the ASAP sale. The politicians were forced to go along because the high risk sales were caused by them. It became a feedback loop.
The snowflake that started the avalanch. Obama is just firing cannons into the mountain to keep the avalanch going.
“yet NOBODY is reporting how this started.
Banks were forced to make loans to unacceptable risks. “
There’s plenty of political hacks saying exactly that. It makes a handy club for beating Democrats, who richly deserve it, but it’s not quite the truth. The CRA applied to commercial banks and had been around for years. The bubble took off when investment banks joined the game in a huge way. CRA didn’t apply to investment banks, they were funnelling money into risky loans all on their own.