[GratefulCitizen]

These bubbles keep happening when there is a system which pretends it is insurance, but doesn't take the associated precautions.
Credit default swaps, some pensions, social security; they don't work without proper loss reserves and incentives.

Insurance companies have loss reserves which are carefully calculated using well-developed actuarial science.
Insured parties normally have skin in the game.

When those two aspects are removed and the system pretends to be insurance, the results are predictable:
A Ponzi bubble and bust.

All those mortgages were backed with nothing; those who were profiting had no skin in the game.
For those playing, there was every incentive to take the money and run (or walk on obligations if they lost).

Our lawmakers simply have no clue what they are doing.

I'm supporting Herman Cain's run for president.
At least he'll have a clue how the finances/economics work.