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.

http://www.ritholtz.com/blog/2010/08/understanding-context-housing-boom-bust/

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”.