"We have always known that heedless self-interest was bad morals; we know now that it is bad economics."
The true cause of the collapse in 2008 was HUD's initiative to get everyone into houses, even people who could not afford them. HUD pressured banks to give out subprime loans and they went along with it. When all these people could not pay back their mortgages, it came crashing down. Government involvement in the housing industry created the bubble, and it burst because it was bound to. Should be prosecuting both the crony bankers who went along with it, but also the government agents who literally created the bubble by force.