“Interesting how history is being (re)written, before our eyes. Banks were forced (by government regulations) to give mortgages to “unworthy borrowers”. “
I agree, but the gov did not watch over what was going on with the derivatives. That has made the situation far worse.
“...the gov did not watch over what was going on with the derivatives.”...
Correct “government” did not. With a wink and a nod from the Clinton Administration government encouraged them. It was one of the gifts to f.o.b. (Friends of Bill)
LOTS of money was made, redirected during the era of Bill to friends, associates, ALL supporters of the Democrats. Part of the overall plan, and it was executed flawlessly.
It was established precedent by the time of Bush, and was virtually impossible to stop by then without causing turmoil prematurely that would have put the responsibility on the Republicans, instead of the Democrats.