Like eliminating Depression Era regulations have worked so well. Savings/loan crisis, 2008 housing crashes, Enron to name a few helped along by removing or tweaking these regs.
>In response to higher prices, lenders gradually extended terms, lowered down payments
That is because of elimination Regulations. I remember a person had to put down 20% in order to buy a house. Also the loans were written by a local Savings and Loan Bank or a Credit Union. These loans were not sold to a Wall Street but funded locally and used to improve the local area.
>In the 2000s the game was in full swing: subprime, adjustable-rate, interest-only and no-money-down loans flooded the market
Again, regulations were eliminated to allow this.
Sorry, I am done reading this crazy article :)