There are fundamental flaws in the government-backed mortgage organizations, Fannie Mae and Freddie Mac, who own or guarantee a staggering $5.2 trillion in home mortgages, which amounts to half the mortgages in America.
The housing crisis -- which erupted in 2006 because of subprime lending practices and adjustable-rate mortgages (ARM's) for unqualified buyers during the inflated housing boom -- was exacerbated by Fannie Mae and Freddie Mac relaxing their lending requirements.
However, the underlying reason for the crisis has not been adequately identified. Three-quarters of a century of massive failures of good intentions by irresponsible big government built by a fatally-flawed socialist ideology. An ideology that simply doesn't work because it relies on unaccountable social, political and economic program over-spending and the seemingly bottomless honey pot of taxpayer money to bail itself out.
To prevent another disaster in the housing and credit markets, subprime mortgage lending, ARM's and teaser credit card rates should be prohibited. And, though it's probably too late, watch who and what you vote for in the 2008 November presidential elections. Nationalizing healthcare, banking and energy will certainly bankrupt America. A reasonably regulated and rewarded free market is fundamental to our survival.