When the regulations limiting banking/investing were removed by the Bill Clinton Administration, anyone could be and was approved for home loans they had no hope of actually qualifying for or repaying. This caused the massive bubble in the housing sector. The same bubbles (but bigger) now exists in several areas of the USA, INC. economy... housing, derivatives, stocks. When the next bubble bursts, the Federal Reserve has no more ammo this time around. FYI: when nations get into economic trouble there is no way out of, world wars happen soon there after.