Housing Bubble Cause

Scott Johnson of Power Line blog has posted a summary, by Hoover Institution research fellow Peter Schweizer, of the causes of the housing bubble whose rupture led to our current recession. Showing that most of the mortgage defaults are in minority neighborhoods, Schweizer concludes:

The real culprits here are the social activists and their allies in Washington who pushed an activist agenda. They helped to propel us into the mortgage crisis we face today.

Reluctant bankers were coerced into making risky loans in order to meet quotas of loans to various "underrepresented groups." As you would expect, these loans were the first to go delinquent when the economy went south.