Since the HUD consolidated all of these bad loans in one place, it was like a bomb going off.
[...]
And now we have a bunch of protesters pissed off at Wall St. Huh? Perfect example of people being brainwashed by our government.
Duty calls.
Of all the misinformation you have in your post (ACORN? Really? Get thee to Glen Beck!) , these are the two most egregious, since they come from a fundamental misunderstanding of the relationship between government and investment banks.
First. The government does not create investment vehicles beyond government bonds. I 'm sorry, but it just doesn't. HUD did not create collateralized-debt-obligations / credit-default-swaps. That was the brain trusts on Wall Street. They were able to securitize and resecuritize these risky loans, due to deregulation of the banking industry. Actually, when it comes to the derivatives market, there aren't any regulations.
Second. No one forced anyone to buy the CDOs. While the first generation of CDOs probably was a good investments, the later generations weren't. They were so bad, that investment banks and hedge funds such as Magnatar Capital were knowingly creating CDOs that would fail, and were shorting them, all the while selling them to their clients as rock solid investments. That is fraud.
That is why people are pissed off. They're pissed off at Wall Street for crashing the economy while making billions on our troubles. They're pissed of at the government for putting policies in place since the 1980s and policies advocated by The Most Blessed, Saint Ronald of Hollywood, Peace Be Upon Him. Polices such as cutting the capital gains taxes. Removing regulations that stabilized the economy and set us on the path to become the preeminent economic power of the 20th century. Essentially, polices that punished work, and rewarded wealth. These are policies backed by Wall Street, and pushed by their lackys in Washington. These are the policies of the GOP. Just look at the charts. And while we're at it, I suggest you look at the national debt chart, and tell me who really cuts government spending.
And you know what I'm pissed off about? No one on Wall Street, is being prosecuted for fraud.
The French knew how to deal with our Wall Street problem.