“Any and every republican should state: “the cause of the sub-prime bubble was not wall St., it was the dems CRA, Fannie Mae sub-prime bubble that they created in the 90s”
We could, as long as we don’t mind being indifferent to facts and simply want to generate some political talking points.
Wall Street lobbied to get the Glass Steagall act repealed during the Clinton administration, a goal which they accomplished in 1999. This opened the door to trillions of dollars of Wall Street money flooding into the mortgage market and the derivatives industry built on top of it, from synthetic CDOs to credit default swaps. Anyone trying to minimize Wall Street’s role in the fiasco either doesn’t know what they are talking about, or is seeking to deceive you.
The derivatives were based on sub-prime mortgages. Remove the sub-prime securities created by bad dem policy, you remove wall st. bubble.
The catalyst to the Wall St. bubble was the Commodity Futures Modernization Act of 2000. This allowed unregulated leveraging (45 to 1). Rubin/Clinton saw to it that the derivatives were unregulated. Regulated or not, we should have allowed Wall St. to file bankruptcy and not loan them money.