Yes the government and HUD DID play a role in that. With the government gobbling up Alt-A securities banks were only too happy to write them. If HUD had been stricter in its requirements for F&F, keeping them away from things like Alt-A banks wouldn't have been so quick to write so many Alt-A mortgages. Ok, I mostly agree with that except "and not hud." Why are you working so hard to defend HUD? They are the agency that regulated and set the lending requirements for F&F. If your mad at the banks, you have to also be mad at HUD, because private banking practices are influenced by the policies and regulations HUD places on F&F. The rest of government gets blame because they did nothing to fix the situation for about 2 decades, even when problems were brought to their attention and fixes were proposed, like moving regulation from HUD to the Treasury Department. Yes, with F&F gobbling up bad loans, banks had no problem writing bad loans. Banks could have done the right thing, keep to tight lending standards, even as HUD forced F&F to relax lending standards, but they didn't. You keep saying, everyone's to blame, but then try to minimize HUDs role... and I can't figure out why. Maybe you just feel silly for initially saying they had no role whatsoever to play, and anyone who thought otherwise wasn't worth debating.