Bloomberg: Congress Caused the Mortgage Crisis

New York Mayor Michael Bloomberg says it wasn't Wall Street that crashed the economy - it was bad regulatory policy.

It was not the banks that created the mortgage crisis. It was, plain and simple, Congress who forced everybody to go and give mortgages to people who were on the cusp. Now, I'm not saying I'm sure that was terrible policy, because a lot of those people who got homes still have them and they wouldn't have gotten them without that.

But they were the ones who pushed Fannie and Freddie to make a bunch of loans that were imprudent, if you will. They were the ones that pushed the banks to loan to everybody. And now we want to go vilify the banks because it's one target, it's easy to blame them and congress certainly isn't going to blame themselves. At the same time, Congress is trying to pressure banks to loosen their lending standards to make more loans. This is exactly the same speech they criticized them for.

Most liberals like to pretend that decades of pressuring banks to give mortgages to high risk buyers had nothing to do with corrupting the financial system, so it's nice to have a liberal crusader like Bloomberg set them straight.