Congress caused this problem, Fannie and Freddie turned it into a business.
You have to assign blame where it belongs-Wall Street bankers.
Wall Street bankers playing by the rules set up by Congress turned the subprime fiasco into a (temporarily) profitable business. A business not possible without Fannie and Freddie turning piles of subprime mortgages into (fake) AAA paper.
See this is the problem. There are no rules on Wall Street. They have no way to value a company properly. The short traders routinely drive stocks up or down almost on a whim. Don’t get me started on hedge funds. The truth is coming out. Do you watch the financial news. Even the pundits can’t deny the breadth of bad behavior in this sector. You can try to blame the recession the Democrats. It won’t work. People are furious and blame Pres. Bush. I don’t say this is accurate, but this the perception.