Quote:
Originally Posted by Greedy,Greedy,Greedy
I don't have a dog in this fight, so if I've missed something let me know, but I thought the biggest trigger in the 2007 debt crisis occurred when US housing prices fell and the equity value of heavily leveraged securitized mortgage pools basic evaporated overnight, drying up the secondary mortgage as a source of funds.
And that the real acceleration of the crisis occurred with the collapse of first Bear Stearns and then Lehman Bros.
I don't think Republicans get all the credit for the collapse of the US housing market and the investment banks that bet on them. I mean, the Rs certainly did their part, but there were some Democratic policies that had a role, too, and Gramm-Leach-Bliley, often blamed as one major component, may have been written by a bunch of Republicans, but Democrats cut a deal to let it get through and it got signed by Clinton.
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This right here. Agree 100%. There are several other factors, but this is more than adequate for a quick answer.
(Ratings agencies perhaps deserve to be in this exec summary.)
