The reason Banks were making bad loans was specific to Governments insistence that banks start making these loans to folks who would otherwise not be approved....that the Government "had their back", and if they didn't, then the Government, under the FDIC would have to look "very hard" as to any "bad practices" that these institutions were perhaps performing *wink wink...best start approving these loans*. I realize the knee jerk attempt to make this all some GOP act, while the Dems were completely innocent, however Graham had squat to do with this.
It was put in place under Clinton, and then exacerbated by Bush,
so yes, Bush was also very much to blame. Republicans in both the House and Senate could see the writing on the wall, and were trying to do something, but were stonewalled in both houses by DC Dems, that portrayed those effort as some supposed witch hunt after the folks running Fannie & Freddie.
And then it came crumbling down, when it could have been prevented. A Bipartisan caused crash.
Which is why Dems are so desperate to have Republicans sign on to Obamination Care, that way all this destruction of our healthcare can be portrayed as a bipartisan caused debacle, and not what it really is, pure partisan democrat caused