America's Crash: Who's to Blame, The Government or Wall Street?

Last week, the US government has re-allowed the dangerous policies that lead to the economic crash in 2007. Fannie Mae and Freddie Mac are the two biggest government regulated and backed housing giants in the US. (Added 11/16/14)They buy and sell mortgages on people's houses. The crash was caused by them selling too many risky mortgages which caused the economic "bubble to burst".

In 2007 the government bailed out Fannie Mae and Freddie Mac, and there was talk in Congress of shutting them down. In the mean time, however, Congress created strict policies to prevent another crash like this from happening again. However, now the Obama administration is removing some of these regulations to try and encourage banks from investing money again. Money that's going back into Fannie Mae and Freddie Mac.

Could this lead to another financial collapse? It's possible, but not probable since investors will be more wary of where they put their money. The real problem is, who's to blame for this risky and potentially dangerous behavior.

I believe that the government is to blame for allowing banks to sell risky investments to Fannie Mae and Freddie Mac, who'll then sell them to investors. I think that Fannie Mae and Freddie Mac are doing what they're supposed to do which is make money. It's up to the government to regulate and control these companies. The companies are not looking out for the best interests of the consumers or the American public; they're just trying to make money. However, the government should be looking out for the American public, and in allowing these companies the possibility of "hurting" the American public is contrary to what the government should be doing.
(Added 11/16/14) The reason the government is most likely doing this, however, is to try and help stimulate America's economy even more. Right now, even though the United State's economy is doing better, it is still not growing as rapidly as we would like. In order to stimulate the economy further, the government is relaxing restrictions on Fannie Mae and Freddie Mac in order to make it easier for people to take out loans and mortgages to buy houses. It also makes it easier for people to invest in these mortgages to hopefully make more money.