You didn't call anything. You didn't once mention the impending credit meltdown caused mostly by Barney Frank and Chris Dodd. =====================================
The housing credit meltdown was not caused by Frank and Dodd. The Republicans had a hand in it too.
The first error was that mortgages were bundled together and presumable "insured" against default by credit swap bondsw, which were supposed to have value, because they were based on the default rates of years gone by. Then banks began to lend money on what people said they earned, rather than what their W-2 statements said they earned.. Then not even that was required, they just looked up the borrower's occupation in a book or caled an 'expert', and granted the loan.
Both Juniorbush and the Democrats were all for this "Ownershop Society" thing, as Juniorbush called it. No banks were forced to accept any loans. but low interest rates encouraged them to approve tons of these thing, just to make up in numbers what these loans could not make them on the rates. Of course, the rates on these were higher than they were for more secure loans. In several months, the sh*t hit the fan, when these lenders began to default, and many more went into default when the teaser rates on the adjustable rate mortgages went up, and ther lenders could no longer pay their installments. The Credit swap arrangements turned out to not be insurance after all. The entire system was a house of cards based on the assumption that house prices would continue to go up forever, which was no longer the case when the number of foreclosed houses exceeded the demand of people who could get a mortgage.
The responsibility was everyone's and no one's, since there was no control on who could be issued loans. The banks formerly would not lend money to insolvent people, but when it became possible to bundle the loans up and peddle them to other banks, "insured" by credit swaps as secure investments, banks went ape lending money, speculators went ape flipping houses to people who could not afford houses, and builders went ape building houses. It was a perfect storm of activity based on the false assumption that house prices would go up forever.