Sub-Prime Mortgages: “No money down, No payments for eighteen months.” I’m not making this shit up.
No, you’re not. And “subprime” was just part of the larger crap mortgage universe called “nonprime”.
In a Glass/Steagall world the consequences are a Boom/Bust cycle in the affected Real Estate markets, some institutions and bankers paying a public price (think Savings & Loan scandals of the Eighties), and a pledge from the industry to behave with higher “Standards of Conduct”.
It was going to happen G-S or not. In fact, the mortgage “casino” started around 97–98, and it didn’t get worse just because G-S was repealed.
G-S separated Retail Banking from Insurance, from Investment banking… the walls were removed, and within a decade a modern variant of ’29 occurred.
But see, it all STARTED in 1998. See where housing price inflation started to deviate from its historical slope?