Financial meltdown

Respected Ma'am asked me about it. Well, I have no idea how it happened, in fact the question is little surprising , as I have never shown any interest in markets. At most I can link to GB and Rohit* who have written on it.
If I understand what both wrote correctly, the crash could have been a result of greed and stupidity on a massive scale, (as Alan Greenspan put it irrational exuberance ), or a result of  well intentioned but unsound policy decisions by US Congress. I will be on the safe side and split the difference. Pox on both the houses !

Of course I still wait for Ritwik to come forward and educate the people, like only he can do, as  Ravikiran is busy with an impending important delivery.

* There is something wrong when people have to go to RTDM and street car for serious stuff. It is not that GB and Rohit are not intelligent, it is just that they are known for humor and (unintended) goat humor.

Update : Just a minor revision. I think original sin has been committed by US govt. in that by setting up implicit guarantee behind Freddie Mac and Fannie Mae it distorted the market by encouraging the lenders to make bad loans. This was compounded by irrational exuberance of  The Wall Street, and, well we have a disaster at hand don't we.