So you think 17 months of domocratic control of hte house caused overinflation of realestate markets, overaggerssive lending practices and a culture of barely legal and unethical manipulation of the securities market? Sure, whatever. The culture in Wall Street and the real edtate markets took a decade or more to reach it's pinnacle of manipulation and greed. The repeal of regulations, lack of oversight for years prior to 2008 caused the problems. Fannie & Freddie were jsut the front end. Whiel their lending guidlines were loose and part of hte problem. The real damage isn't making bad loans. Its' not properly idientifying the level of risk, pricing them accordingly, having adequate loss prevention and MOST improtantly, when reselling them into securities, you need ot represent them honestly or at least those buying the secruities need ot pay attention to what they are getting.
You can make a loan to ANYONE.... so long as you have adequate down payment, insurance, loss prevention, and price it accordingly (part of loss prevention).
Bank not managing their risks isn't the fault of congress. Its' the fault of greed and what appears to be "easy money".
The systme was so messed up. Basically on paper the ROI of these mortgage back securities appearsed to be so good that demand shot up so high ,that htere was massive pressure to make loans, regardless of the risk. You have bank executive just screaming for voulme so they can stuff more mrotgages onto these pieces of paper.
My wife is a mortgage lender and was a broker in the center of this mess in San Diego from abotu 2000-2004. LONG, long, long, before the dems took control. It was happening then. It just took 4 more years to blow up.
I think historically, you can consistently take the policies of the administaration in power anywhere from 4-8 years prior to explain events.
You don't blame Roosevelt for WWII happening and the Great Depression. Yuo can't even specifically blame Hoover. You actually need to look at Wilson's, Harding and Coolidge to look at how the end of WWI was handled and foreign and fiscal policies for the 20's.
You don't blame Lincoln for the Civil War happening. You have to consider The 2 or 3 administrations prior. Heck, that war was brewing from the time the Constitution was ratified.