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Housing Bubble & Financial Crisis - Who's to Blame? Part 2 of 3 | PowerOptions Web Log
Because the financial meltdown has happened so close to a presidential election, the partisan spin-masters are working overtime to capture the public’s perception of who is to blame. The Democrats are blaming the Republicans for de-regulation. The Republicans are blaming the Democrats for propping up failing government-sponsored programs. The mortgage industry is blaming consumers for making poor financial decisions. The consumers are blaming the mortgage companies for issuing loans that could not be maintained. All parties meant well. But, as they say, the road to hell is paved with good intentions. As congressional Democrats continued to prop up Fannie and Freddie, they tried to keep alive a government entity designed to level the playing field of home ownership, but which also brought about gluttony of mortgages that, under normal lending practices, should never have existed. As Republicans pushed for de-regulation of the financial markets, they believed in the ability of...