[YogSothoth]

I don't doubt the CRA is part of it, but I think the fed lowering and lowering and lowering the prime rate after 9/11 in order the stimulate the economy figured prominently as well.

With interest rates low, banks have to be more aggressive in pursuing borrowers to maintain their same level of profitability (i.e. they'll start considering loaning to folks they'd normally not loan to). Also, with interest rates low, there was a housing market boom which convinced a lot of people they could make money buying houses on credit and flipping them.

It makes you wonder if we'd have been better off if we'd have just let the economy recover on its own after 9/11. The fed lowering the prime rate did hasten the onset of economic recovery 7 years ago, but look where we are now.