I have kvetched about mortgages before. I probably will again. Since we do not seem to learn. I have also bitched about political correctness. This is where the two of them meet.
Mortgages were issued based on politically correct considerations rather than on credit worthiness. Issued mortgages were based on need or race rather than ability to pay. What other end could there be? When you lend money the only consideration should be can (will?) they pay it back? Any other criteria means you will not only lose your profit (interest) but your principle also.
So Fannie Mae, Freddy Mac, Lehman Freres, Merrill Lynch (whatever happened to Pierce, Fenner and Smith?), Good Bye. You brought it on yourselves by being irresponsible with other people's money. You abused your fuduciary responsibilities. I am only sorry that you had golden parachutes; maybe the courts can recover that theft.
Our Liberal politicians have used fiscal irresponsibility to buy votes for decades. This is only the first to go. At some point or other the fate of these giant financial houses will be the fate of our government also. Since countries don't actually go bankrupt. It will manifest itself in a different form -- most likely a collapse of our currency will be the first step. From there? Anarchy? Or totalitarianism? Or Anarchy then totalitarianism? It will not be good.