For the last several months, I have been trying to absorb everything that I could possibly read (and understand) regarding the market failure tied to the housing bust of 2007/8. I read “The Big Short”, by Michael Lewis, and recommend it to everyone. The language is rough, and it has a very narrow focus, but it introduces some good core concepts to those who might not previously have the information.
I found this article, and think it does a good job of laying out a description of the various inputs that caused the crisis. It’s obviously more than one single act. Check this out. It manages to be pretty non-partisan other than the one comment about a Bush-era “preemption” of state’s Predatory Lending Laws.
Let me know your thoughts. I think that Americans need to learn from the last ten years, and the primary lesson should be “let’s not try to live above our means”.