It wasn’t so much the lack of regulation as it was that the US government was doing everything it could to pump money into the housing market. Fannie and Freddie were tools for that end. They built a bubble and it popped.
“It wasn’t so much the lack of regulation as it was that the US government was doing everything it could to pump money into the housing market. Fannie and Freddie were tools for that end. They built a bubble and it popped.”
It seems to me that the thrust of the video was that R’s were warning that too much money was being pumped into the market, and the attempt to regulate the GSE’s was stymied by the Dems.
This was not, imo, a bi-partisan failure - this is all on the Dems, particularly Frank and Schumer, who promoted their social agenda without regard to the consequences Bush and the R’s were warning them about.
It all came down to the democrats meddling in the market to make housing “affordable” for those who intrinsically should NOT be homeowners. One aspect was artificially depressing interest rates leading to massive speculative investment. No matter how you slice it, it was democrat malfeasance.