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Wednesday, February 13, 2013

Why does the GOP continue giving Wall Street a pass when it comes to the financial crash?

Yes, the financial crash was primarily caused by the shenanigans on Wall Street, no matter how much you love or hate the federal government.

Marco Rubio has learned nothing

From the piece:

Deregulation, the explosive growth of virtually unregulated shadow banking, lax lending standards by loan originators who sold their loans off as soon as they were made, had nothing to do with it — it was all the Community Reinvestment Act, Fannie, and Freddie.

Look, this is one of the most thoroughly researched topics out there, and every piece of the government-did-it thesis has been refuted; see Mike Konczal for a summary. No, the CRA wasn’t responsible for the epidemic of bad lending; no, Fannie and Freddie didn’t cause the housing bubble; no, the “high-risk” loans of the GSEs weren’t remotely as risky as subprime.

No, the government did not cause the crash

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