>This is the easiest question to answer...and the toughest for some to acknowledge.
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>Government policies/pressure to increase homehownership among the poor and ethnic minorities
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> This was done by both parties...including George Bush and his "we will use the mighty hand of govt to force lending institutions...."

I don't view the pushing of home ownership as bad, however, the pressure exerted to approve loans to unqualified applicants was (I agree for now :) ) the single largest player in the housing run-up and subsequent collapse . The approval of so many unqualified home buyers created a supply-side restriction which in turn ran up house prices. When those unqualified home buyers in turn forfeited their homes, the reverse occurred; a run-up on the supply-side which in turn reduced prices. In Florida they are saying we have enough houses already built to satisfy demand for the next 10 years. In some Florida cities as many as 1 in 5 houses is vacant!

So the natural question: Who pushed the approval of home loans to unqualified applicants? George W. Bush was certainly a big player and so was Clinton. I think you could easily include Bush Sr. too. Special interests had all of them in their pockets. Politicians are nothing more than marionette dolls for the special interests that actually pull all the strings. And those sons' of bitches walked away from the collapse billions of dollars richer.