2. is those who were allowed to get a loan and those who allowed them the get a loan and the democrats for forcing banks to givce loans to people who could not repay the loan.
Bush and the GOP controlled all 3 levers of power during the peak bubble years.
The Bush "Ownership Society": converting America's fastest growing demographic to Republicans
Bush created the ownership society in order to dramatically increase minority housing. Rove speculated that the GOP would die because their primary demographic (white people) was shrinking. Rove wisely stated that the GOP would need latinos electorally, especially in the "out years", when their numbers will grow faster than whites.
VDARE.com: 09/28/08 - Karl Rove—Architect Of The Minority Mortgage Meltdown
Fueling a dead economy to gain a second term and preserve control over the middle east energy policy
Bush worked closer with Fannie and Freddie than anyone in history. The point was to tap non-credit worthy borrowers because they were the only fuel left for the economy -- every other demographic had been tapped.
Clinton opted for a tech bubble rather than having a huge recession. This turned into a disaster.
Bush opted for an even bigger bubble (in housing) for the exact same reason, and it lead to a bigger disaster.
Greenspan praised subprimes as innovative ways to expand home ownership.
Clinton and Bush used Wall Street, low interest rates, and financial deregulation to dump liquidity on the market.
If you want to see how deeply Bush pumped the housing bubble, watch this video from start to finish. He states very clearly that he is going to remove the lending restraints which minorities face. Republicans keep trying to blame the community Reinvestment Act from 1977, which had been in place nearly 40 years with zero problems. The housing bubble was Bush's way of getting a second term. He ended up destroying the country long term.
I bet you don't have the courage to watch this entire video. There is no ambiguity about where the housing bubble came from.
[ame]http://www.youtube.com/watch?v=kNqQx7sjoS8&feature=related[/ame]