It is the fault of the "insiders in Washington," insiders like Biden and Barney Frank. In the 1990's under Clinton, in a bid to buy minority votes, banks were threatened with massive fines if they didn't increase inner-city minority lending. The only way to do that was to loosen the credit standards. Combined with the Clinton's administration leaning on the Fed for cheap money, the seeds of disaster were born. In 2003 the Bush administration tried to rein in Fannie Mae and Freddie Mac and to establish stricter oversight. This was stopped cold by the Congressional Democrats who fought it tooth and nail. Though Republicans are not completely without blame, the seeds were planted by the Democrats, and nurtured by them, now we are reaping the results.
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