What was it again that was responsible for the housing meltdown?
Dodd-Barney Frank must be tossed, it’s a terrible rule.
Stupid lending policies.
Then the government stepped in to fix it and really effed it up. The mortgage crisis would have played itself out. Truly criminal lenders (See Countrywid) needed to be dealt with criminally.
Then Dodd-Frank came along and crushed the life out of all businesses for no good reason other than to prove they could. It’s a horrific, onerous piece of rubbish.
Just the mention of President Trump doing away with it drives the market up.
The feds forcing bad loans to the uncreditworthy.
What was it again that was responsible for the housing meltdown?
NINJA loans. No income, no job. The greatest democrat invention since the War on Poverty.
And BTW, Bush did try to fight against this, but gave up when the amoeba republicans in congress didn’t lift a finger to help him.
As others noted, lenders were compelled by law to loan money to people who everyone knew likely wouldn’t pay back.
What others are missing, lenders solved the obvious problem with that by buying insurance against those defaults ... unfortunately the insurers were other lenders, who insured their own insurance service by buying insurance from other lenders, and the relatively small number of big lenders ended up insuring _themselves_ by proxy. Ergo, when a big enough aggregate defaults hit, lender A made an insurance claim from B, who made an insurance claim from C, who ... made an insurance claim from A! result was bad loans were insured by, well, nobody; the whole chain fell down, and would have taken the entire economy with it (we’re talking seriously big banks here being compelled to make a seriously large number of seriously bad loans) had not the President stepped in, called all the top executives into a room, and told them exactly what to do and that they would go to jail for life if they didn’t.
The CRA...Community Reinvestment Act.