as always

All the malinvestments of the economy were cleared in the bust

CRA required lax lending standards that spread to the rest of the mortgage market. That fueled the mortgage boom and bust.

Yet you agree that the majority of the boom was at least fueled by private, non-obligatory investment not influenced directly by government intervention?

they were influecned

big time

And that’s why I also argue for better lending standards.

If this regulation did NOT exist, this crisis would not have happened

Visitor well thats the case, banks would not have made these loans if it were not for the regulation

They already have good lending standards

I doubt it. MBSs were a new technology that would have made a splash in the investment field anyway, regardless of whether government intervention furthered its adoption.

I wouldn't

banks and investment firms would never have made these loans

100%

While banks go for profit, like any company

Yet they did make them even when they had no further obligation to do so

they have to make sensible decisions to make the profit

Because of the CRA

The CRA didn’t force them to take up anywhere near the level of dubious debt they did

Read above

CRA ratings existed

they were hard pressed by regulators aswell

It contributed to demand, sure, but the government building roads doesn’t create booms and busts in the pavement sector

The state effectively distorted the mortgage market due to it's central planning

Thats not a good comparison

What kind of comparison would you want instead?

None

it cannot be compared

The CRA was a regulation that did force banks to make these loans, without it, it wouldn't have happened. But there was other things like CRA ratings

And the fact that the CHEAP CREDIT

was another huge factor

Both of those were going to cause a bust

And it was needed

my state’s mandating that people pay for drivers’ insurance doesn’t cause a huge increase in drivers insurance costs and payouts

What?

dude I'm telling you it can't be compared

it's what it is

A regulation that caused a crash

I’d actually agree with you that the Fed’s interest rates were at least a percent too low from 2003-2007.

not a percent, far too low

We don't even know how low because the market should control the rates