Why did banks lend more money then they had? They were reassured by the US govt via Freddie and Fannie they could not lose on bad loans. And, US govt policies motivated Freddie and Fannie to buy bad loans. Until politicians experts understand their 'good intentions' have consequences, any fixes will not end the problem. But then maybe that is what the politicians really want, more self created problems so they can usurp more power. What's killing capitalism is statist socialism.