How is it that, with such easy access to information, people still think the crash had anything to do with business? It was the Congress under Bill Clinton that mandated banks sell homes to people without money ("no money down" mortgages), and banks that said "no sorry you don't have enough cash" were subject to prosecution to racial discrimination.
Sorry Charlie, but a very selective choice of one sided youtube vids doesn't qualify as serious evidence. The actual foreclosure stats show that most foreclosures were on loans made to white folks in the burbs and that only a small fraction were the result of Clinton housing policies. This shows up in that most of the problems were with loans made by mortgage loan companies that were not subject to the
Community Reinvestment Act which is the rule set that you are referring to and which covers the actual banks. It is a
flat out lie to claim that the banks were afraid of being prosecuted for racial discrimination and so made the loans they did.
No, this was all about 3rd party mortgage brokers who acted as middlemen for the lenders who in turn never bothered to look at the actual credit risk of the borrower because they were able to securitise the loans and sell them on to some unsuspecting yahoo based on high credit ratings supplied by Fitch and Moody's who used models of foreclosure rates that were not based on actual reality. Couple that with the low rates supplied by Greenspan and Bernanke who refused to recognize that we had a housing bubble because they refused to believe that private enterprise would ever do something that dumb and you have the makings of a real disaster.
You need to turn off Fox Noise and realize that the world is much, much more complicated than your simplistic and rather pathetic partisan blather would suggest. There is a huge amount of blame to be shared in large helpings by Congressional Republicrats and Democans, the Fed, the Reagan, Bush I, Clinton and Bush II administrations, the banks, the mortgage brokers, the ratings agencies, the individual borrowers, and the buyers of the CDOs.
For a great set of articles on the whole mess, read Michael Lewis's book _Panic_ which is a wide-ranging compilation of articles on the '87 stock market crash, the '97 Asia crisis that led to the demise of LTCM, the internet bubble, and the housing crash. The articles appeared in places like the WSJ, NYT, Congressional testimony, etc. The articles show each crisis from a before, during, and after perspective. The seeds of the housing bubble go way, way back and are largely the end product of 30 years of financial "innovation."
Oh, BTW, Congress doesn't prosecute people or banks. That function belongs to the Justice Dep't which is part of the Executive Branch.