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I have seen several articles which I thought gave a good account of what caused the present financial crisis. One of them (I don't recall where it was) pointed out the part played by spending beyond our means both by companies and by individuals. This can not be done indefinitely, and bankruptcy follows.
Another good article was in the New York Times on June 1, 2009. The title was "In Crisis, Banks Dig In for Fight Against Rules" by Gretchen Morgenson and Don Van Natta, Jr. It pointed out how the removal of certain regulations for banks and other financial institutions several years ago opened the door for abuses such as credit-default swaps and other "derivatives" , and the government encouraging mortgage companies to make loans to people who could not afford them.
All this led to the real estate bubble, the "flipping" of houses, and the eventual collapse of house values. This explains most of it to me.
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