When the bubble deflated in 2007, an unprecedented number of weak mortgages went into default - those that were held or guaranteed by Fannie and Freddie, and those that had been securitized by Wall Street. This drove down housing prices and threw Fannie and Freddie into insolvency. 

Greece's economic and political unraveling could not be coming at a worse moment for President Obama. The crisis has the potential to send shock waves not simply through Europe but also through global financial markets on the very eve of the U.S. presidential election.

Vincent R. Reinhart suggests the Fed promise to purchase government and mortgage-related securities in order to bolster the confidence of household and investors, and, in effect, encourage spending.

There is clearly something wrong in Japan, but perhaps losing their coveted economic slot to China will prove the kind of shock that makes Japan take some chances and free the creative energies of its people.

AEI's John Makin examines the consequences of German deflationary policies and Greece's probable exit from the eurozone in the latest Economic Outlook.

The European Union has taken the dramatic approach by offering a massive economic bailout to its members facing financial crises, making bailouts the new norm.

Democrats have misread the mood on the public's appetite for more government.

The CBO's cost estimates for health care reform came in higher than Democrats expected, but they might not have been so unpleasantly surprised had they paid attention to the director of the CBO.