Lower lending standards of course meant higher risks of default. In pursuit of those higher home ownership rates, especially among low-income people and minorities, the many vast powers of the federal government - from the Federal Reserve to bank regulatory agencies and even the Department of Justice, which issued threats of anti-discrimination lawsuits - were used to force banks and other lenders to lower their standards for making mortgage loans. That was what was done by Frank, Dodd and many other politicians who made the pursuit of higher home ownership rates the holy grail. Politicians are of course more articulate than small children, so the pols are able to not only disregard warnings but ridicule them. But neither small children nor politicians always heed warnings. Many, if not most, of the children who go running out into the street in pursuit of their bouncing ball may have been warned against this by their parents.
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