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Politics : American Presidential Politics and foreign affairs
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To: DuckTapeSunroof who wrote (40510)1/18/2010 2:41:19 PM
From: TimF  Read Replies (1) of 71588
 
That shows how - "Even though only one of the top 25 subprime lenders was subject to the regulations in question?" is a pretty meaningless question.

The CRA and lawsuits and political pressure based on the ideas behind it, affected the majority of mortgage lenders relatively strongly and often directly. And it was an important early factor (along with allowing certain institutions to use insanely high leverage, and reserve requirement rules that rewarded the exotic mortgage securities with a much better position over normal mortgage (or non mortgage) loans, and Fannie and Freddie's operations), in getting the bubble going. Once it took hold the main thing driving it was the impression that house prices where just going to go up and up. When that feeling is that wide spread your going to have a bubble under almost any regulatory structure.
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