Perhaps your understanding of these events is lacking depth I dont have the time nor the space to explain to you how the removal of the GlassSteagall Act directly affected the housing and insurance markets  However once you familiarize yourself with the facts surrounding this financial pyramid scam concerning credit default swaps predatory loans fake SP credit ratings fraudulent insurance policies etc the only reasonable conclusion would be that system was set up to fail by allowing banks to gamble with peoples savings instead of keeping them separate  This was by no means the only cause however it was a major contributor to the crash and the eventual blackmailing of US taxpayers by the major banks and investment firms THC Loadee