Leo- There is a part of your post I must strongly disagree with:

the housing bubble (which triggered the overall financial crisis) was caused by decades of government policies directed at increasing the rate of home ownership. These policies – pursued with gusto by both Republicans and Democrats [Ed.: isn't bipartisan good? Not when it's bipartisan stupidity] – had the effect of greatly loosening lending standards. IOW: government encouraged, and then abetted, then forced, easy mortgage money.

The frothiness of the upper end of the market, particularly the jumbo loan housing market ended in late 2005 with the introduction of higher interest rates. Prices softened and days on market grew. However at the lower end of the market during that period, Freddie and Fannie stepped on the gas and their subprime lending and other schemes greatly increased. The loosened standards were much more prevalent at the lower end of the market as was the fraud. Special increase rate collateral discounts were still common for the poor. Much of the toxic paper issued by Fannie and Freddie were issued from 2005 onward. So to describe the cause of collapse as a “housing bubble” doesn’t adequately describe the situation.

Moreosver, from 2004 these schemes by Fannie and Freddie were fought by the Republicans, even RiNOs like Mc Cain , and were fiercely protected by the Democrats. The needed reforms were time and again blocked solely by the Democrats. So to paint these subprime shemes in a “Bi -partisan” broad brush for the blame paints a grossly incorrect picture, and does not at all assign culpability in the appropriate proportions.

BTW, the situation in mortgage lending leading to the collapse has not been thoroughly fixed. Right now, in Southern California it is very difficult to get a jumbo or upper end conforming loan particularly for the self employed. Very low loan to value and great credit are required. That market is very slow.

Meanwhile, the lower end of the market is booming due to lower prices and the fact that FHA loans and other low collateral loans
are still widely available to lower income people with reasonable credit.

Additionally, people who have defaulted on their mortgages , rather than being foreclosed, are often being given 40 year 4% fixed loans so the banks don’t have to declare a foreclosure and cover that foreclosure with more reserves.

So the socialist two step keeps on a truckin.