When you get past your passion there is actually a lot of truth in what you say.
The Republicans got into trouble the same way Nixon got into (economic ) trouble : By trying to be like the Democrats. By trying to follow liberal policies believing they could implement them better than the Democrats.
No bank was REQUIRED to issue sub-prime mortgages under the CRA. However, if they planned on expanding or taking over another bank they had to demonstrate compliance with CRA goals and the "community" could challenge any expansion or takeover based on inadequate "investment in the community".
Likewise there were plenty of sub-prime lenders who behaved ethically and whose borrowers are current on their mortgages.
It was not the sub-prime lenders who came up with mortgage backed securities ( MBS's) and credit default swaps ( CDS's). It was Morgan Stanley and Lehman Brothers and AIG.
As we've repeatedly pointed out, it was NOT Phil Gramm's legislation alone; or the Dems obstructing reform of Fannie and Freddie by itself; or too much loose money from the Fed. but ALL of those things together along with plenty more that
combined to create and then burst the housing bubble.





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