Paul Krugman writes,

So I’d suggest that what we did between 1980 and 2008 was to replace a financial system in which profits were created by lack of competition with a system in which profits were created by misinformation and misperceptions — a giant, if mostly (not entirely) unintentional Ponzi scheme, which finally went bust.

And without strong reform, it will happen again.

I would fix the last sentence to read:

With or without strong reform, it will happen again.

I would also point out that Freddie Mac and Fannie Mae had lack of competition and franchise value up the wazoo, but that did not lead them to stay out of trouble.