Quote from Martinghoul:
.... Unfortunately, Calomiris's emphasis is entirely political and not very useful as a result.
I disagree. He is pointing out that politics, specifically the urban populism as he terms it, was largely responsible for the problem. You can't lay political blame without being political to a degree, but he also says republicans were complicit.
Liberals want to say that CRA was not a problem, but that is clearly untrue. You don't encourage sound lending when you start making mergers contingent on payoffs to groups like ACORN. Or when you start pushing FNM/FRE to buy up no doc loans from iilegal immigrants et al.
Similarly, he points out we had the benefit of the S&L crisis of the late '80-s-'90 era to demonstrate the danger of government-backed entities, yet pols like Barney Frank and Chris Dodd blocked efforts by the GSE's regulator to rein them in. Whether it was because Frank's boyfriend was an exec there or because the GSE's were run as slushs funds for out of work democrat politicians, I can't say.