Theres a bunch of problems

The banks (more like their investment banking side) was doing A LOT of speculation. They over speculated and put almost all of their liquidity into these mortgage backed securities and when the market tanked, so did their balance sheet.

I agree regulation is the key. But whose doing the regulating? more crooked politicians. Barney Frank is still on the Finance Committee, all this happened under his watch yet he still has a job? Same with Chris Dodd.

It happened under GWBush too, and he let it go on, hes as much to blame too.

I think greed in some form is good. It promotes ambition. But Greed unchecked can cause huge problems.

The banks learned (for the time being ) from their mistakes and they are being more repsonsible about lending now, i dont think the Prez should be attacking them and telling them to loan more. I think their analysts know a good loan when they see one, and a bad one to pass on.