Banks were apparently forced to make crazy loans to people with virtually no assets, , no job, no income, etc. In trade for taxpayer backing.
The regulators were dragged into Congressional hearings before Barney Frank, Maxine Waters, and Franklin Raines ; then called racists for requiring reasonable regulations . So the regulators folded.
https://www.youtube.com/watch?v=UIjoW_IXos4
Senate Committee Hearings on Fannie Mae & Freddie Mac 2004
The famous NINJA loans, No Income, No Job or Assets.
Seems quite the opposite IE: govt lowered the regulations and banks followed the lowest-common-denominator (LCD). Doesn’t sound like ‘force’ to me.
Of course, voluntarily FOLLOWING the LCD, I lack the sympathy when those deadbeats they allowed to take loans...defaulted. What I do have is ire and contempt for Congress to have bailed out the same w/ taxpayer $$.
Much like GM, they should have been allowed to go under, bought up and the institution(s) possible made stronger w/ the knowledge; instead we got ‘more of the same’, ‘too big to fail’ and more illegal/unconstitutional spending thanks to the GOP (I KNOW where the DEM camp resides, so I had NO hope there of anything different).
Even if they WERE coerced, I didn’t hear much, if at all, the warnings from the same; let alone the GOP(e) ‘leadership’/party....