A refreshing perspective from Phil Gramm. It's not just about the banks

On Bloomberg TV last month, former U.S. Senator Phil Gramm discussed the housing meltdown, as well as, his own work to deregulate the banks.  

Phil Gramm, Wikipedia

During the course of the interview, Mr. Gramm highlights "concerted government action and pressure on banks" to make sub prime loans and destructive decisions in Washington "to force feed housing" ownership.

The Bloomberg interviewer insinuates that there were as many predatory lenders as predatory borrowers.  So, exactly, what is a predatory lender?  I believe many borrowers were unaware of the potential risks of their variable rate mortgages.  That's fair.  

However, were millions of people buying more home than they could afford, or sucking more equity out of their homes than they could afford to lose; all largely duped?  I never believed so and still don't believe so.

Gramm asserted that for every subprime borrower who actually got swindled by lenders, there were "one hundred" that exploited the system, i.e., predatory borrowers.  There's the debate, Mate. 

That millions of borrowers bought properties they couldn't afford, recklessly used cash out financing, or shouldn't have been in variable rate notes in the first place, is clear.  We will debate for years which players and policies enabled the whole sorry misuse of credit.  Laying the entire mess at the hands of bankers is conveniently populist, but incorrect. 

If you don't have time for the whole interview, consider moving the needle to the six-minute mark.