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[quote user="edblysard"] I do place part of the blame on the lenders...who in their right mind lends $200,000.000 to a couple of kids each making a buck over minimum wage? [/quote]Answer:  Any lender who has a guarantee from the U.S. government to cover the loan if the couple of kids should happen to default.  And any lender who is threatened by the U.S. government with civil rights prosecution for discrimination if they don't lend money to the financially disadvantaged.Lenders are caught between a rock and a hard place.  If they don't lend to the under-qualified, they are discriminating, and if they do lend to them, they are predatory lenders.  It is a way for the borrower to always be assured of being a victim.  Predatory lenders, irresponsible borrowers, deregulation--these are NOT things that caused this housing crisis.  It is true that the lenders lost the money.  They played a role.  They apparently got swept up in the euphoria of lending money in a world without risk.  They may have overestimated the credibility of the government's guarantee.  Apparently as evidenced by the events of the last couple weeks, the government was at least $700-billion dollars undercapitalized to make such a guarantee.The yellow brick road that takes you to the underlying explanation of the cause of this mess leads right to Freddie Mac and Fannie Mae and government policy executed through those two organizations starting in the 1990s.  And it continues from there right into congress and ends at the doorstep of several specific individuals who can't stand this being known for at least a month. A 700-billion dollar piece of wool is being pulled over the public's eyes.
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