California Just Approved a New Mortgage Policy That Looks Just Like What Led to the Financial Crisis of 2008

Does everyone remember the 2008 financial crisis that hit right before the presidential election that year?

Most experts agree that one of the driving causes of the crisis was a government policy put into place under President Clinton that allowed unqualified home buyers to not only buy a home, but to buy way more than they could afford.

When these home loans began defaulting in huge numbers, they dragged down or even destroyed the investment vehicles they had been bundled into by banks and it became a snowball effect.

Now California is about to try this again, because of course they are.

BREAKING: California voters just passed Prop 37. Buyers of newly built homes can now put down 3% instead of 20%.

How: the state lends you the other 17% as a second mortgage, funded b...