It’s not Socialism screwing us over at this point. It’s Laissez-Faire Capitalism.
Oligarchy also greases politicians' palm from profits
I disagree somewhat. The socialist state political class dictates who must loan to who. Also, there has been an assumption for years, if not decades that FNM would ultimately be backed up by the U.S. taxpayer. An assumption, that seems to have been a good one. This allowed people to make loans that made no economic sense whatsoever.
What economic sense does a zero-down interest-only 30 year mortgage make in a sane world?
While there was a speculative bubble, it would have run its course long ago without the guarantees and influences of Uncle Sugar on the markets. It would also be a regional problem. What was happening in real estate in California specifically was obvious insanity to most of the rest of the country.