Affordable housing didn’t cause the financial crisis

[el_bryanto]

1. 100% true. We lived with Affordable housing for decades before we had the crisis.

The crisis was caused by a situation which encouraged lenders to give money to anybody with a pulse, because the point wasn't to loan money to people and get a return, it was to bundle those loans in to CMOs and CMBSs and sell them (often to pensions and local governments). Because they no longer cared about the quality of the loans, they loaned a lot of money they shouldn't have, not just to the working poor, but to speculators. The whole thing was predicated on the housing market never taking a downturn; once it slowed the system crashed and vast sums of money disappeared (again often in pensions, retirement plans, and state and local governments).

Bryant