I’m going to cut you off: no. It had nothing to do with housing policy. It happened because new derivative products allowed junk-rated mortgages to be pooled and repackaged as AAA-rated securities. The loans were made en masse because they could be quickly resold for profit.https://twitter.com/snoopuhh/status/1040349343088291840 …
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Replying to @mtaibbi
is this a true statement? There was a govt policy to promote low income housing; this policy didn't cause the crash, but a window opened by the policy somewhat contributed--i.e. govt wanted promotion of lending to poor--banks grossly (and illegally) abused policy in myriad ways.
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The feds didn't force Countrywide CEO Angelo Mozilo to pledge $1 trillion in "minority and lower income" mortgages on 1/13/05, but did facilitate it: Bush told his regulators that being skeptical of go-go lenders like Mozilo worsened racial inequality:http://takimag.com/article/the-wisdom-of-dan-quayle/#axzz5R1R86Ld2 …
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