A short history of the housing bubble & crash

as told on Huffington Post with a 250 word limit

Wonder if I will be censored again LOL
The Dems don't like too much truth.

"The government bore the major part of the blame for the housing bubble and crash. 

From Clinton's early insistence that the banks did sub prime lending. 
The repeal of Glass Steagal in 1999 (for which an increase in sub prime lending was part of the deal).

The increase in derivatives which came about because of the repeal of Glass Steagal and then loose monetary policy. 

The major factor though were the government guarantees of Fannie and Freddie. 
Even the greedy banks would never have loaned so much money out if they could not pass on the risk to them. 

Then of course you had Bush getting the base rate reduced to 1% in 2003/04 to get re-elected. 
That's when the real craziness started. 

Naturally the big banks went more than crazy with greed. 

Bush did nothing to cool the bubble down. 
He did nothing to stop mortgage loans being sold on a month after they were written. 
How much do you think the mortgage broker and the realtor cared if the poor sucker buying the house could afford it? 
Especially when they waved teaser loans under his nose. 

Then you had liar loans, greater than 100% mortgages , nothing down. Total madness. 

Then the big banks packaged up the mortgage loans and got the ratings agencies to rate sub prime at AAA - LOL. 

It was bound to all end in tears. 
Government manipulation of the market always does."