@revelette,
revelette wrote:
The following is a pretty good article on the situations which led to the meltdown. All in all, it was a bad decision to reverse the Glass-Steagall Act. However, it was the banks who acted irresponsible by making those loans just to sell them to make a profit.
The point is, who is to blame, the people buying bad loans or the people selling them? If the government began buying every auto loan in this country, without regard to the soundness of the car, the loan, or the ability of the people to pay off their loan, what do you think would happen to the auto sales industry and all of the auto loans in this country? I know that might be a very tough question for you, revelette, but I think just an ounce of common sense and a very basic understanding of human nature and economics would help you answer it very easily. Give it a try, and perhaps it will help you understand what happened with the housing market.