"Community Reinvestment" to Global Financial Crisis

The left's standard argument that deregulation caused the Global Financial Crisis belies history involving the left's own champions:
 

1) Barney Frank & Maxine Water’s Community Reinvestment Act (with the rabid support of ACORN) forced lenders to loan billions to unqualified borrowers or face stiff penalties--even closure. Not surprisingly, their districts directly benefited enormously from this redistributive injunction. The loans were guaranteed by propping up Fanny & Freddy (which would otherwise be insolvent) with billions in tax-payer money—could there be more blatant redistribution?
 

2) All these new home buyers and the Fed’s artificially low interest rates fueled red hot demand for housing which inflated the housing bubble.
 

3) Most qualified American homeowners began to believe they were wealthy because of rapid appreciation. That encouraged consumption and a rash of refi’s & 2nds…still more loans to fuel the fire!
 

4) With the full blessing of Clinton's SEC and the Fed, First Union Capital Markets and Bear-Stearns begin to securitize CRA loans. The securities were guaranteed by Freddie Mac and had an IMPLIED "AAA" rating (spread the manure around enough and it won’t stink up the place--freaking nuts!!!) Not surprisingly, “The public offering was several times oversubscribed.” Ya think?
 

5) No body including the government (and Wall Street whom they’re in bed with) took into account what would happen to this new artificial system built on Barney Frank’s crap loans when his unqualified borrowers inevitably defaulted. Billions in these toxic securities were now spread throughout global markets. --If everyone is affected it’s nobody’s fault.
 

6) The GOVERNMENT did absolutely nothing to slow the effects of the problem IT CREATED. And why should it? When the system collapsed, they had created a perfect crisis to facilitate the largest power and asset grab in US history!
 

7) The failure was not capitalism. It was Barney Frankism! Not free markets, but government bureaucrats attempting to manipulate the market to achieve their redistributive agenda. And it wasn’t a failure at all. Rather, it was a smashing success in advancing the aims sought by the progressive movement for over a century! Not surprising that George Soros’ Center for American Progress was one of very few who have made a lame attempt to discount the impact of CRA enforcement and securitization of CRA loans on the crisis. Go figure! Soros & company have made gazillions trading derivatives packed with CRA crap loans.