CNBC Special Report: House of Cards

By James Jacoby and Jill Landes
In 2004, in the midst of the housing boom, President George Bush had a chance to do a little bragging in his State of the Union Address.

“This economy is strong and growing stronger," he said, to applause in the House chamber. "New home construction (is at) the highest in almost 20 years. Homeownership rates (are at) the highest ever.”

Just one month later, then-Federal Reserve Chairman Alan Greenspan encouraged the mortgage industry to come up with new kinds of loans — so even more people could buy homes.⇒