In the video below, Democrats are blaming Republican legislation for the banking crisis.
Correct me if I am wrong, but wasn’t one of the goals of Gramm-Leach-Blily to get the debt off of bank balance sheets, so that they could more easily meet their HUD-Fannie-Freddy mandatory benchmarks? I am no expert in these things, but that is how it looks from my corner of Layman Ave.
That being the case, the origins of this catasrophe remain the misguided socialization of the mortgage markets. It’s possible to argue that without HUD using CRA and groups like ACORN to extort banks into dangerous sub-prime lending, Grahmm-Leach-Blily would never have needed a mechanism to help the banks clear the garbage loans off of their books.
