OleUncleJoe . . . I love your multi-piece post so much I had to edit it back to shape and email it to a few friends. You are missing a key piece (or maybe I missed it). Where did those toxic assets come from? From the LIBERAL policy of pressuring lenders to lend to poorer people who could not afford to buy a house. Sure it allowed these people to enjoy the America Dream of home ownership who would not have been able to, . . . until the interest rates started to rise and they couldn't afford the payments on their mortgages any more.
How many people think (raise your hands, now) that any self-serving, greedy bank would lend money to people who can't afford to make the payments unless someone is pressuring them to . . . .