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The housing market bubble that burst lays mostly on democrat policy and lack and deregulation. The result of Clinton era ideology to allow people to but homes without proper valuation, verification of income, etc. It was a case of you can burrow greater than the ~%40 of your income from monthly payment. The mortgage lenders and banks took advantage of the situation; they didn’t break the rules or laws. The offered shitty products, interest only loans, balloons, ARM’s, they played by the rules of capitalism.
Actually, the Gramm–Leach–Bliley Act was written by three Republican senators, so Clinton and Democrats aren't the only ones to blame, though they are also to blame since they endorsed it and added in the requirement that a bank had to have a high CRA (Community Reinvestment Act) score in order to qualify for merging. This led to banks wanting to give out a bunch of loans to low income borrowers that they knew couldn't pay them back, but those banks were able to manage those losses since they earned more profits from becoming involved in investments and insurance.