The subprime mess was indeed caused by poor regulation because the regulator was blocked by the Democrats who called the regulator racist. The statement that poor regulation resulted in the subprime crash is correct so far as it goes. It just doesn’t address the root cause, Government meddling in the housing market.
I agree that it’s clear the Dems. blocked investigation of the supply side of the problem. But the FBI warned Bush, the Justice dept. and Congress of the CDS fraud on wall street in 2004. And no one did anything. So the Dems & the Repubs are guilty of slopping in over-lapping troughs of special interest. The more we allow the Repubs to pretend to be real Constitutional Conservatives the longer we extend the problem. Of course they are closer to being Constitutional Conservatives but we can’t simply let the pendulum swing back to the right and be satisfied.