The attached link is from Jason Leavitt. As my economic background is very limited, what do you think of his opinion? http://leavittbrothers.com/chartspeak/ChartSpeak_072708_How Did We Get Into This Financial Mess.pdf
In my opinion everything in that document is a symptom of a more fundamental problem and they were all designed to stave off inevitable collapse. To understand the more fundamental cause read the book Web of Debt which is available on Google books.
In the book one of the economic systems it proposes that would work is that a government institution gives a $100 loan at %5 interest they immediately make the $5 then spend it into infrastructure etc. Then the person that made the loan would be able to get the extra $5 by working and pay off the loan. In the current economy if the next wave of debt is not given out the $5 cannot be payed as only $100 exists. This would also have the effect of lowering taxes. This is basically the economy the founding fathers had in mind.
Anyone can come out now after the fact and write about the past. Here in 2006 Peter Schiff explains everything going on and what is going to happen. Has everything spot on, including a possible FRE/FNM bankruptcy. http://uk.youtube.com/watch?v=6G3Qefbt0n4 (Nov 2006 Peter Schiff Mortgage Bankers Speech Part 1 of 8)