re: What Happen with the Sub-Prime Mortgage Crisis

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it was primarily people who couldn't afford homes taking out mortgages on those homes 2nd was the ratings agencies for committing fraud by intentionally overrated the MBS's 3rd was the banks for loaning people the money for the mortgages

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Meh, Banks and Borrowers on equal footing and fault here. Two willing parties to those contracts..

4th was the bank mortgage desks and investment funds buying CDOs and Mortgage bonds without bothering to actually review the risks of what they were buying.

5th was the repeal of glass stegall.

6th was governments assuming the debts of investment banks and saddling their citizens with that debt.

7th was rampant speculation by middle and upper class Americans, Chinese, Icelanders, Dutch, Germans, Irish, and Koreans.

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Clinton got the ball rolling when he made Fannie Mae and Freddy Mac increase the percentage of sub prime loans taken in order to boost his minority housing initiatives.

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Agreed. This misguided, liberal nonsense started it. Some idiots in academia convinced the democrats to push this.

Those 1990s democrats look like economic geniuses and "budget hawks" compared to today's bunch of leftists.

But all that is not to excuse the idiot "new homeowners" that bought $450,000 houses when their combined household income was $48,000.