Castles made of sand

Economist article blames federal subsidies for housing bubble. I agree emphatically. In fact, I believe the financier's aggressive (some say greedy) actions in creating CDOs for risky mortgages were the market's natural reaction to the aggressive lending by Fannie and Freddie and that the housing bubble actually has little to do with financiers' actions. There was some misinformation due to the miscalculation of risk on the part of the credit rating agencies, but this is part of the problem inherent in basing risk forecasts on past performance. We need a new way of predicting the future.