The Blame

“"the private sector ruined the banking system, not the government­."

Actually, the government's foolish efforts to guarantee the mortgages of the GSE's ( Fannie, Freddie ) were the government market interventions that allowed the crooks of Wall Street to run wild with securitization of mortgage debt. The leverage against those securities and the derivatives wound around the mortgage debt were government-endorsed con games. It all happened right before the eyes of government. Google 'Brooksley Born'.

The credit bubble was built on poor quality mortgages. Government insisted that risky loans be given and government backed for the bundles and bonds created from that risky debt. A complete state-private partnership caused the engineered crash. It's typical of any communist/­corporatis­t entity.