Government and the Financial Mess
This is a good run-down of the government’s role in stoking the entire thing:
Macroeconomic and microeconomic policy blunders by both the U.S. government and foreign governments inflated an unsustainable housing bubble in the United States and other developed economies. When this bubble inevitably popped, a global financial crisis ensued. Although misaligned private incentives, methodological errors in rating structured credit products, and the recklessness of some private financial institutions and investors did play a contributory role in the recent financial turmoil, individuals and firms could not have created and sustained such a large housing bubble over so long a time without major macroeconomic and microeconomic policy mistakes.