Blame Clinton for this mess.

I've just read a most illuminating article that I missed earlier in the week in Coffee House. Iain Dale drew it to my attention.
It is quite long, but the thrust of it is that because the Democrats in the shape of Bill Clinton came in in 1992, their positive racial discrimination led to lots of poor white, black and Hispanic people in the States getting mortgages. In effect, the new rules laid down meant not only 100% mortgages but significantly higher loan to earnings offers.
That was fine for a few years. Unfortunately, poor Americans are worse off now than they were then - their earnings have declined in relative terms. So, strapped for cash, they remortgaged say 7 years ago, and then again 2 or 3 years ago against the equity in the house. Unfortunately again, they were no longer remotely able to meet the payments - and the equity was gone, and now has become negative.
I have to say I had long wondered how it all became quite so dire, but this explains it. In effect, the Clinton Administration forced Banks and mortgage companies to abandon what might be described as prudent banking in pursuit of a chimera - everyone must own a house.
This is patently absurd. Most people can manage to make regular payments - but many can't. Whether we like it or not, Capitalism's way of dealing with a loan is to make regular payments.
So, as the article says, don't blame the Republicans. Blame the Democrats and their Politically Correct views that have now destroyed America's banking system.
As ever, Government interference destroys, rather than creates.