The Sick and The Healthy
A banker friend of ours says his bank (and many others) have done a good job of managing risk and are in very decent shape despite the mortgage meltdown. Of course, his bank wasn't big into sub-prime and no-doc lending.
As has been said before, the mess can be traced back to Fannie Mae and Freddie Mac which bought, sold and guaranteed such stupid loans. And they did so at the behest of liberals and liberal groups who wanted to see home ownership made "more affordable" to minorities and lower middle class. Of course, home building associations and groups also pushed for the same thing.
With backing of these two quasi-government giants, Fannie and Freddie, a cheap-mortgage industry sprang up that encouraged people to take out loans they couldn't afford and wouldn't pay back.
Now, those same liberals, like Rep. Barney Frank, Sen. Chris Dodd and Barack Obama (who fought for the "right" of minorities in Chicago to be granted mortgages despite bad credit histories, etc.) refuse to accept any of the responsbility for the disastrous consequence of their hard-fought-for policies in action. Fiscally liberal and irresponsible Republicans also fell for the same claptrap.