In the 2008 financial crisis who was to blame more, the republicans or democrats?

[Blah]

Going through the stock market crash in social and i'm trying to understand all the different parts of it.

[Wolf Myth]

Both are equally to blame.

[bobemac]

Fannie and Freddie mostly.....

[punyhealth685]

.... LIBERALS CAUSED THE HOUSING MELTDOWN ......

1977: President Jimmy Carter (D) signs the Community
Reinvestment Act (CRA) guaranteeing home loans to low income families

1999: President Bill Clinton (D) puts the CRA on steroids,
pushing Fannie & Freddie to increase the # of sub-prime loans.

2003: White House calls Fannie & Freddie a systematic risk.

2003: Barney Frank (D-CT) says Fannie & Freddie are not in crisis.
He bashes Republicans for crying wolf and calls F & F financially sound.

2003: Democrats block the Republicans-sponsored regulations
legislation.

2005: Sen Schumer, (D-NY) says “I think Fannie & Freddie
over the years have done an incredible job.”

2006: Sen John McCrain (R-AZ) calls for reform. “For years I have been
concerned about the regulatory structure that governs F & F
and it needs to be reformed NOW.”

2007: Democrats again block reform legislation.

2008: Housing market collapses, Democrats blame the Republicans

[Jason L]

.... LIBERALS (DID NOT) CAUSE THE HOUSING MELTDOWN ......

the 1977 CRA only banned "redlining" - which was the practice of discriminating loans if you weren't in the right "zip code". It did NOT "guaranteeing home loans to low income families". Applicants were still required to have means to pay the loans.

http://en.wikipedia.org/wiki/Community_Reinvestment_Act

1999: President Bill Clinton (D) puts the CRA on steroids : NOPE!! that was the Gramm-Leach-Bliley Act, written by three Republicans, passed by Republican majorities in both houses of Congrss. All Clinton did was to FAIL to Veto it. And it CERTAINLY would've been passed under Bush first term, if he didn't sign it.

2003 GW BUSH "AMERICAN DREAM DOWNPAYMENT ACT"
http://www.gpoaccess.gov/usbudget/fy08/p...et/hud.pdf

"The 2008 Budget continues Administration efforts to modernize FHA by improving its ability to reach traditionally underserved homebuyers , such as low- and moderate-income families , individuals with blemished credit, and families who ha ve little savings for a down payment."

^ That's a DIRECT QUOTE from a BUSH ADMINISTRATION DOCUMENT (linked above, on a .gov server) about the "AMERICAN DREAM DOWNPAYMENT ACT - a BUSH ERA program which was PAYING DOWN-PAYMENTS FOR PEOPLE WITH BAD CREDIT RATINGS

How much more relevant to the the "sub-prime mortgage crash do you want to get? bush ran that for FIVE YEARS leading up to the crash. A total of $440 billion was earmarked to be spent on these non-payers, and often unemployed, peoples home-loan down-payments. Assuming 10% downpayments that's 4 trillion in risky loans right there, directly sponsored by Bush.

Bush also threatened Fannie Mae unless they upped the % of loans to low-income home buyers from 50 to 56% :-

"2004: HUD ratcheted up Fannie Mae and Freddie Mac affordable-housing goals for next four years, from 50 percent to 56 percent, stating they lagged behind the private market; from 2004 to 2006, they purchased $434 billion in securities backed by subprime loans."

http://en.wikipedia.org/wiki/Timeline_of...ing_bubble