So Did The Housing Crisis Cause Our Economic Meltdown & Our Continuing Malaise

Until we get this right - and by that I mean identify the causes of our economic meltdown - we will never fully right our economy, nor protect it from the harm done by the left's social engineering.



I've been beating my chest on this one since October 2008.  The left's social engineering - put into law by the left through the Community Reinvestment Act and forced down the throats of lenders by community organizers - led to the massive housing bubble based on a complete degradation of lending standards.  The bond rating agencies - which have yet to be criminally investigated - were utterly and criminally complicit with Fannie and Freddie in giving AAA ratings to equities based on subprime loans.  These toxic loans created by Fannie spread throughout the world's financial markets.  Wall St. created Credit Default Swaps were insurance policies against default.  They were not the demon the left has made them out to be.  They failed not because of lack of regulation, but because mark to market accounting rules meant that when the bubble burst, the equities based on subprime loans could not be sold and thus had to be accorded a wholly unrealistic value of zero dollars on the bank books.  All of this is what caused the economic meltdown.

It should be noted that in Dodd-Frank, the exact same social engineering that led to the economic meltdown in the first place is not only retained, but strengthened.  It virtually insures that we will again face the same economic issues that led to the melt-down in the first place.    

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