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 government had to step in because at that point the mortgage crisis would have completely imploded. HOWEVER, when crisis averted, they should have figured out how to step back out and leave narrowly-targeted rules to prevent such a CF from happening again.
The problem, oversimplified, is that a small number of extremely big banks had insured each others’ sub-prime lending, resulting in the claimant being their own insurer by proxy. When a big enough cumulative insurance claim happened, everyone was about to crash. The government had to step in and prop everyone back up, lest the whole economy subsequently crumble.
While the government did save us from an enormous financial crash at that point, the government was also complicit in setting up the problem (sub-prime loans to borrowers likely to default), allowing the problem to fester (the insurance required to make that work turned into a circular set of dominos), and when the crisis was over they didn’t get out of the way.
If the Left doesn’t like what Trump is doing, it’s because nothing was done to resolve obvious problems for the last 8-28 years. The buck is stopping here.
Dodd-Frank...Didn't I just read something on Drudge about them having sex in a Bed Bath and Beyond store?