It keeps getting g repeated how it was the goobermint that forced the banks to make bad loans.
It was a Clinton reelection ploy that allowed low income, bad risk applicants to "qualify". Much to the delight of the banks, the loans were guaranteed. Realtors made major sales. Builders were building as fast as the could and employing masses (yes, many illegals).
With home prices soaring so did the tax bases.
Sounds like a win, win, win
Well, unless it crashes and you are a taxpayer left holding the worthless note.
But we get Hitlery in '16 and it will be all better again.
If the banks did not issue enough high risk loans to unqualified applicants they faced fines among other things. Not to mention groups like ACORN protesting outside bankers houses, holding sit-ins in bank lobbies, etc.