The over extension of credit is much of the problem. Too many people were unable to pay their bills.
But Probably a major factor that caused delinquencys in repayments is that the price of oil and gasoline spiked. People spent their extra disposable income on basics like gasoline. Higher oil prices created inflation in everything from food to packaging to transportation.
Absolutely no economist has mentioned high oil prices as a major cause of people defaulting on their easily obtained credit. Much of the oil money was sucked right out of our economy and went to rich Arab oil monopolies.
Government needed a crisis. Democrats manufactured one. Perfect timing in an election year.
For that matter....can anybody explain what happened there and why? I, for one, would like to know what kicked off this disaster and who the guilty party/parties are. We were told "speculators". Uh...yeah. But who are the speculators? We may never be able to bring them to justice, but out of curiosity, it would be nice to know who they are.