Well . . . but also see David's reply a few messages above. It should have been clear a few years ago during the housing bubble that this was going to end badly. And I think it was. I remember a number of editorials and other news sources discussing the housing price run-up, the excess of ARM mortagages, and what would happen if a critical mass of people crashed and burned.

A more responsible federal government would have gently applied some brakes. But I think the Bush Administration had a stake in preserving an expansive lifestyle for Americans so as to soften the blow of the Iraq War and therefore maintain some level of support.

And blame goes to the Democrats as well. After all, they held Congress when most of the de-regulation occurred, and Bill Clinton was also an ardent supporter.

I won't go so far as to say that de-regulation itself is the culprit, but the degree to which oversight and control were lost may have been a few compass clicks too far.