The worst of the subprime loans were from companies that had close ties to the Democrat Party.
Read about Countrywide, Golden West and others.
Numerous Washington, DC politicians over recent years had received mortgage financing at noncompetitive rates at Countrywide Financial because the corporation placed the officeholders in a program called “FOA’s”—”Friends of Angelo”, Countrywide’s Chief Executive Angelo Mozilo. The politicians extended such favorable financing included the chairman of the Senate Banking Committee, Christopher Dodd (D-CT), and the chairman of the Senate Budget Committee, Kent Conrad (D-ND). The article also noted Countrywide’s political action committee had made large donations to Dodd’s campaign. The largest recipient of campaign contributions from Countrywide, though, was Rep. Ed Royce (R-CA), House Financial Services Committee), who has received $37,500 since 1989. Dodd has advocated that the federal government, through the Federal Housing Administration, insure up to $300 billion in refinanced mortgages for distressed homeowners.
On 18 June 2008, a Congressional ethics panel started examining allegations that Democratic Senators Christopher Dodd of Connecticut (the sponsor of a major $300 billion housing rescue bill) and Kent Conrad of North Dakota received preferential loans by troubled mortgage lender Countrywide Financial Co.
Angelo Mozilo, though engaged in fraud, was rescued by the corrupt Obama SEC and DOJ. They refused to pursue criminal charges against Mozilo.
Fannie Mae was also corrupt.
It was reported by the Wall Street Journal on 6 June 6, 2008 that two former CEOs of Fannie Mae, Franklin Raines and James A. Johnson, who was also an adviser to then-Democratic presidential candidate Barack Obama, had received loans from Countrywide. On July 16, 2008, The Washington Post reported that Franklin Raines had “taken calls from Barack Obama’s presidential campaign seeking his advice on mortgage and housing policy matters.” However, Raines and the Obama campaign both allege that Raines has never advised Obama.
And don't forget Barney Frank who fought every attempt at regulatory oversight of the corrupt subprime mortgage schemes that almost brought down the entire economy.
“And don’t forget Barney Frank who fought every attempt at regulatory oversight of the corrupt subprime mortgage schemes that almost brought down the entire economy.”
You were doing good up to that point. Bush was as much in favor of subprimes as Barney- subprimes weren’t what either of them were concerned about, they both were promoting subprime lending and were doing absolutely nothing to curtail it.
The problem with Fannie was that it was undercapitalized. Too much debt to equity. That’s what Bush and McCain wanted addressed. Barney was siding with Fannie’s executives, who had been manipulating their earnings statements in order to boost their bonuses. People often assume that Bush was trying to reign in subprime lending and that his concern about Fannie involved that. Not so at all.