You can “think” that, but it isn’t true. This is more of a belief, an article of faith for you and those who share your beliefs. It is not something that is rooted in fact. It’s kind of like your belief that the price of gold isn’t really the price it trades for each day on the markets. We have seen problems with bad loans before and since Glass-Steagall they have not resulted in anything remotely resembling The Great Recession. That last problem with bad mortgages occurred in the 80’s and 90’s. It was the Savings and Loan Crisis when S&L’s made a bunch of bad real estate loans and nearly a quarter of the nation’s savings and loans went bankrupt as a result. That bad loan debacle didn’t cause a recession much less a great recession or a global liquidity crisis. The fact is deregulation took financial instruments (i.e. debt) and allowed banks and shadow banks to magnify the liability and potential return or losses of those instruments several fold and while not reflecting that liability on their financial statements. What differentiates this mortgage debacle from the Savings and Loan bad debt crisis is the newly legal derivative instruments which leveraged (magnified) the risk, liabilities, and potential returns and losses of the underlying securities. This isn’t rocket science, it is really pretty simple. No the problem was the leverage derivate instruments brought to the market place. It made debt much more profitable but it also made it much more risky. It’s a fundamental rule in finance. Return is always proportional to risk. That is why derivatives were created, to make more money. And banks and shadow banks ignored the risk afforded them by the derivatives because they liked the enhanced returns. And that is why Dodd-Frank could not fully remove them from banks by reinstating Glass-Steagall. And if you were not tar and feathering banks and Bank of America, then you should have left them out of your indictment and limited your indictment to Countrywide.