A good paper on the causes of our current troubles is "How Not to Solve a Crisis". The authors argue there are four causes.
And guess what? Government is heavily implicated.
They don't even mention this candidate from the road-to-hell-is-paved-with-good-intentions: the 1997 capital gains tax break for home sales.
These are the kinds of things that lead William Buiter to argue that the only thing worse than an incompetent government would be a competent one.