Big Government Created Housing Bubble

Not only were the profits privatized and the losses socialized, but what is even more sickening is the current claim by the 'Big Government Solves Everything' crowd that more government would have prevented the toxic bundles from becoming the foundation of a derivatives bomb... Big Government was essential to the creation of the phony mortgage bubble. The government backstopped the mortgages through FM and FM- that was the insurance that gave the green light for the con artists of Wall Street to market all that garbage debt as a securities.

If the mortgage bundlers didn't have the government seal of approval on their garbage, the racket would have never produced the eventual systemic crisis, because the market naturally rejects weak paper assets. Government backing is what made them appear strong.