Nearly 60 percent of the loans were made in California, Florida and Arizona, where home prices rose — and subsequently fell — faster than almost anywhere else in the country.
Yahoo News/The New York Times
So, What NYT is telling us is that the mortgage lenders, home buyers and home builders were dumba**es, Sold people homes and gave them mortgages for WAY over what those people could afford, because basically, everyone "should" have the American dream.
I know I'm not sounding very hardcore republican right now, but a bail out will only do so much, and I'm not really for it that much. Frankly, Americans need to have a very long lesson in personal financial responsibility, work ethic and humility. If you can't afford it, don't buy it.