[427sharpe]

I think the largest mistake was Congress legislating lending policy. When you begin leaning on banks/lenders to make risky loans to push a social agenda, you inherently increase risk (& losses). It is unrealistic to assume that the banks investors ('Greedy Speculators' if you believe BHO) will absorb the losses created by the artificially inflated risks. Simple fact is, a lot of people who are defaulting on loans (and a lot who aren't) would never have gotten a loan without the legislative push. Want to end the crisis? Re-vitalize Glass-Stegall and sever the banks again!