Both Mark Levin and Neal Boortz have a good synopsis of this train wreck in slow motion while congress and the regulators slept at the stupid switch.
Boortz is a recovering Real Estate Attorney who's paid exorbitant amounts of money not to practice law, but, instead, does a talk radio program 5 days a week - for the last twenty(?) years.
Mark Levin is also radio talk show host, and a constitutional lawyer (along w/ a certain pres. candidate). Levin practices law in the private sector, heading up the prestigious Landmark Legal Foundation in Washington DC.
Their conclusions are very similar. In short, hyper P.C. pandering by leftists in congress to appease quasi-marxist, 'community activist' groups (like acorn) wrote into law demands (RCCA) that private sector banks make unsecured, high risk loans which allowed people who had no business receiving mortgages (read: poor people) to receive those mortgages, yet were co-signed by Uncle Sam, anyways (that means you & me).
This bad debt train ran full throttle through many signals.
And, after 10 years of this bad debt being passed around like a biker's long tooth party girl, the chickens finally came home to roost.
But all the leftists can do is froth up another spittle-flecked tirade of BDS.
Levin has a 70 minute audio here.
Boortz has a one page editorial here.
RPC has the visual.
Updated update: Kevin Hassett at Bloomberg.com kicks bankrupt behind and takes names:
It is easy to identify the historical turning point that marked the beginning of the end.
Back in 2005, Fannie and Freddie were, after years of dominating Washington, on the ropes. They were enmeshed in accounting scandals that led to turnover at the top. At one telling moment in late 2004, captured in an article by my American Enterprise Institute colleague Peter Wallison, the Securities and Exchange Comission's chief accountant told disgraced Fannie Mae chief (former Clinton administration budget adviser & current Obama housing adviser*) Franklin Raines that Fannie's position on the relevant accounting issue was not even ``on the page'' of allowable interpretations...
...What happened next was extraordinary. For the first time in history, a serious Fannie and Freddie reform bill was passed by the Senate Banking Committee. The bill gave a regulator power to crack down, and would have required the companies to eliminate their investments in risky assets...
But the bill didn't become law, for a simple reason: Democrats opposed it on a party-line vote in the committee, signaling that this would be a partisan issue. Republicans, tied in knots by the tight Democratic opposition, couldn't even get the Senate to vote on the matter.
That such a reckless political stand could have been taken by the Democrats was obscene even then...
Many others throughout the blogosphere pick it up from there and add their own commentary.