My point and what I have concluded is that the government created the climate which, over time led to both the bubble and the financial crisis - it wasn't the greedy bankers or the free market or because there was too little banking regulation. I have the opposite opinion. It was gambling by bankers with other people's money via credit derivatives that was directly responsible for the crisis...and there's more crisis coming.http://moneymorning.com/2011/10/12/derivatives-the-600-trill...Credit derivatives aren't regulated at all. Total lack of regulation of this dangerous financial instrument is what got the ball rolling. Eventually, coupled with mortgage products that were simply crazy on their collective face, the risk bubble could no longer be contained.The Agencies (Fannie Mae and Freddie Mac) and FHA were slow to join the blooming bubble--Fannie/Freddie because they eventually offered stated income loans. FHA never deviated from their long-standing guidelines, which have always been loose relative to conforming. Neither did the CRA.For more insight, Frontline just did an excellent program on the banking crisis. Sorry, but it was America's bankers who are to blame.The Untouchables--Frontline investigates why Wall Street’s leaders have escaped prosecution for any fraud related to the sale of bad mortgages. http://www.pbs.org/wgbh/pages/frontline/
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