The economy started collapsing once the government introduced such concepts that allowed it to get to the point of the collapse. 2007 was a result of a number of wrong and bad decisions, it was not the cause. The cause is the government expansion, printing of paper money, federal reserve controlling and manipulating interest rates to be below what market would set, various rules, laws, regulations and taxes that prevent formation of capital and of businesses and promote outsourcing manufacturing.

What we are observing now is just many lines of bad decisions coming together into a single point, everything is being focused together and comes into light.

The reasons for all of this is corruption bottom up and top down, it is people expecting free shit to be handed out by government, expectations are that some people will pay for others, it doesn't matter if we are talking about income taxes, bank bailouts, housing subsidies, various rules and regulations, it is just a culmination of the effects of all of these causes.