The govt told them to make those loans. Clinton said, get these people into homes. Or else, we’ll sanction you. And Bush made it worse. If you are going to give minorities loans they dont qualify for, you have to give them to everyone. And, hey, if they dont care if I qualify or not, why not just buy a more expensive house.
The govt started this mess. Contrary to the dems, it wasnt too little regulation, it was too much that caused this.
I remember like yesterday the massive outcry by mortgage lenders begging and pleading with the government not to be forced to have to make those loans, while they raked in their huge fees. They complained so loudly, didn’t they? I mean the poor dears were just forced by the government to accept a waterfall of outrageous fees while they pumped through bad mortgage after bad mortgage. Such innocent victims of all this...
All that is my sarcastic way of saying, the government didn’t force the market to do a thing. The government didn’t invent derivatives. The government didn’t force leverage at 40:1.