The (private) financial industry is the minor player here, although still culpable. The Federal Reserve, a government agency, has wildly inflated the money supp

The (private) financial industry is the minor player here, although still culpable. The Federal Reserve, a government agency, has wildly inflated the money supply (just as it did in the Roaring '20s), setting off (just as in the '20s) a speculative boom that led (once more with feeling!) to a stock market crash. Fannie Mae and Freddie Mac, two government controlled agencies, are at the heart and soul of this as well. They bought every crappy sub-prime mortgage that they could find, and now they're gone and the American taxpayer is holding the bag. Then there was the Community Reinvestment Act, which you'll be excited to hear is still very much in force, which allows "community groups" to coerce banks into making mortgage loans that don't meet traditional standards. Example: ACORN used to break into bank board meetings while chanting their demands for more loan money. There was Chris Dodd, head of the Senate Banking Committee lo these last 2 1/3 years, running for President and paying no attention to what was going on, while accepting vast bribes, sorry, "campaign contributions", from the financial industry and blaming everyone else for the problems. Oh yeah, then there are the banks (e.g., The Bank of Marin) that want to give the TARP money back but can't, because the TARP law requires government permission and Obama won't let them. Power and control.