Welcome to Mortgage crisis 2.
The first one was so much fun, and it only cost $500 billion bailout.
The banks were accused of this new thing called ‘Redlining’ which was racist. (How dare they refuse loans to poor people who could not afford to pay them back)
They picked a bank that ‘refused’ was sued by the clinton administration, with Andrew Cuomo running the show.
They had to pay what was the largest fine in history.
So the rest of the banks fell in line- If they didn’t loan the money they would get sued, if they did- and the loan went bad- the government would bail the out. So it was a no brainer.
This let to the first S&L bailout- which was 100% the government’s fault.
McCain & group engineered that.