Having read dozens of articles and talked to people about what they thought I came across this article that summed up what happened during the 2008 Housing Crunch. What I enjoy about this article is that it shows why it happened, the events that led up to the collapse, but more importantly demonstrates that it was the fault of everyone, and not one individual or party. Interesting read. http://www.factcheck.org/2008/10/who-caused-the-economic-crisis/
The MoveOn.org Political Action ad blames a banking deregulation bill sponsored by former Sen. Phil Gramm, a friend and one-time adviser to McCain’s campaign. It claims the bill “stripped safeguards that would have protected us.”
That claim is bunk. When we contacted MoveOn.org spokesman Trevor Fitzgibbons to ask just what “safeguards” the ad was talking about, he came up with not one single example. The only support offered for the ad’s claim is one line in one newspaper article that reported the bill “is now being blamed” for the crisis, without saying who is doing the blaming or on what grounds.
The bill in question is the Gramm-Leach-Bliley Act, which was passed in 1999 and repealed portions of the Glass-Steagall Act, a piece of legislation from the era of the Great Depression that imposed a number of regulations on financial institutions. It’s true that Gramm authored the act, but what became law was a widely accepted bipartisan compromise. The measure passed the House 362 – 57, with 155 Democrats voting for the bill. The Senate passed the bill by a vote of 90 – 8. Among the Democrats voting for the bill: Obama’s running mate, Joe Biden. The bill was signed into law by President Clinton, a Democrat. If this bill really had “stripped the safeguards that would have protected us,” then both parties share the blame, not just “John McCain’s friend.”