Hag Pelosi and company sucessfully blame republican deregulation for the subprime debacle, all the while republicans (and greenspan) were the ones sounding the alarms and asking for regulation of fannie, while demos didn't do a damn thing. Just how does this work exactly? This subprime crap was a Clinton idea, instigated by his policies, fueled by the CRA revisions initially, then later by Fannies implicit guarantees and massive purchases of subprime securities. Fannie was given explicit targets for its 'special affordable' home. Yes, there was some republican legislation, like the lifting of the cap gains exclusion on homes to $500K (which fueled price inflation) and Glass-Steagall repeal, but the prime mover of this whole mess was liberal motivations, and later GWB, to get poor people in homes but make the private sector pay for it. Low interest rates didn't help either. This was a bubble created by public policy. It's a dumb idea to try and get the market to give poor people loans. When forced, the the market will respond in a distorted and dumb way because somehow, some way, the market will try and put lipstick on that pig and make money. Wall street brainiacs found a way by golly, but in doing so created a monster far larger than the initial problem- Unintended consequences. In 1997, Bear Stearns did the first securitization of CRA loans, a $384 million offering guaranteed by Freddie Mac. I didn't hear any cries of how bad republican deregulation was from the queen bitch Pelosi then. The smart insiders knew this was shit but they also had to make money, why else would they create the CDS market and these type of new securities? If liberals want poor people in homes, then they should have put forth a direct lending program under full gov't supervision so that the cost was upfront and known. The political types could trumpet increased home ownership, but seemingly didn't have to pay for it, typical free lunch thinking. But also typical that they blame republicans, and typical that it sells. Very depressing, the slide into socialism goes without a fight.