Government forced banks to use “affirmative action” underwriting and make bad loans to bad borrowers. Those loans were going to go bad from the moment they were made.
Because they were high risk loans from the start, they were given high interest rates to cover the loans that went bad. But they made too many bad loans and then government allowed mortgage based securities to be sold, on the basis of those bad loans.
Take congressional democrats and affirmative action out of the picture, and there would be no crisis today.
The amount of so called ‘forced’ loans was a mere drop in the bucket...you can’t blame this on all on Congress. Nope, you have to understand the magnitude of what happened.