Deregulation failed, not socialism. Wow, that's some serious revisionist bullshit you just tried to pull.
Didn't work. Sorry about that.
False... As de-regulation did not occur. And what you claim to be 'deregulation' occurred as a result of Progs... Trying to spread the dead weight of unfunded liabilities in the form of tens of millions of bad mortgages across a wider field than the US Federal government gaurantee.
The failure came in the form of socialist coercion of lenders to abandon sound, actuarial lending principle for a perverse notion of 'fairness', wherein it was declared that 'everyone deserves to own their own home', despite the natural truth that those who deserve to own their own home... own their own home.
By setting aside long established soundly reasoned lending principle... The Left (socialists) caused a run on mortgages, which caused a spike in the value of the underlying real estate, which continued to rise until the value of that real estate rose beyond the means of the market to sustain those values.
Once that level was reached, those seeking to buy real estate could no longer be assured that their investment would increase in value, at which point demand declined sharply... And with that declining
demand, came the intrinsic and sharp decline in value of the underlying real estate, OKA: Bust!
Now absent that 'deregulation' that you're crying about, the millions of default mortgages would have been sitting upon federal guarantees... Which would have caused instantaneous federal bankruptcy..
Instead... Those mortgages belonged to those who bought them from the Banks who enjoyed federal protection and sold to security owners ... who did NOT.
Now... The simple truth is thatsecuritizing mortgages did not cause the value of real estate to climb or fall.
The securities had zero effect on the price of real estate. None, zip... Nada.
Foolish lending policy is what caused that... And the foolish lending policy was caused entirely by Leftists... As all socialist policy is... .