Perhaps my point was too subtle. Here it is with a hammer.
When Government intervenes and tries to regulate a sector of the economy you end up with unintended consequences. A-la the CRA being strengthened and given teeth under Clinton. The Consequences are that people who should not be given mortgages at any interest rate, were given mortgages because the Government Owned Entities of Freddie Mac and Fanni Mae would buy up the mortgages. So what happens? Lenders start giving the bloody things to anyone who shows up because they will be rid of the high risk loans as Uncle Sam will buy them.
Fast forward to recent economic history (last year or so) and the banks have been allowed to become investment houses so they use the customers' assets to buy the bad mortgages to re-sell and play hot potato with them. Then when the music stops, the Banks/Investment houses with the big percentages in these "Toxic Assets" get burned.
What I want to know is what regulations did Bush NOT enforce that allowed this to happen?
I really like the revisionism. It almost works.
You need to look up a couple of things. You can do so either on BWOT as it as been previously posted repeatedly or you can go to direct source material [also linked on BWOT, much by me].
Just what percentage of bad loans were CRA generated?
Bottom has avoided this question since I brought it up to him. My guess is he found out the very easy to find answer and didn't want to answer the question on line. It sorta blows the crap out of the CRA element of this argument.
As for what regulations did Bush NOT enforce?
Jeez, how many times does that have to be posted up? From the simple audit of brokers [think Makeoff] to verifying balance of highrisk/normal risk loans to auditing security [was the loan actually secured] to enforcing the limits on hedge fund leveraging. Look them up. Again, either on BWOT or original source documents. Start with Securities and Exchange Commission, the Office of Thrift Supervision, Federal Financial Institutions Examination Council, FDIC, Comptroller of the Currency and the Departments of the Treasury and Commerce. ALL are under the Administrative, by the way.
For a really interesting snapshot, look at the FRB Nov1 2006 notes and see how Bernecke was still pushing SubPrime, even as warning flares had been going off for over a year. FRB: Speech--Bernanke, Community Development Financial Institutions: Promoting Economic Growth and Opportunity--November 1, 2006
The zeal this administration had in "spending out of debt" was much of the problem. It was NOT just Bush. It was all the folks around him as well.