-A bubble in the housing market
-The originate-to-distribute model of mortgage lending
-Lack of transparency in structured finance and mortgage-backed securities
-Lack of regulation of derivatives
-Poor credit-rating practices
-Fannie Mae and Freddie Mac straying from their original mandates
-Implicit government guarantees for Fannie and Freddie
-Lack of regulation of hedge funds and private equity
-Inadequate capital requirements for financial intermediaries
-The too rapid or generous extension of Fed credit to non-banks
-The rescue of Bear Stearns
-The failure to rescue Lehman
I am sure you can add a few more to the list.
What I am asking is this: which one of these items--individually or taken in groups--was both necessary and sufficient to bring us to our current impasse, where the government has little choice but to take over all mortgage-related assets off the books of private financial institutions?
If you answer "all of the above," you are not being helpful at all.
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