Douglas W. Rae, teaching Yale's Capitalism: Success, Crisis and Reform, examines the subprime mortgage crisis through the case of Cleveland's collapsing housing market. He walks through the chain of actors involved, homebuyers, brokers, appraisers, lenders, investment banks, and ratings and government agencies, laying out each one's incentives and exposure to risk. Rae sketches a history of federal involvement in mortgage markets going back decades, then traces how deregulation reshaped lending practices in the run-up to the crisis. The lecture closes with a class discussion on where responsibility for the housing market's collapse actually belongs, weighing borrower behavior against institutional and regulatory failure. Recorded in Fall 2009, it treats the crisis as a case study in how incentives across an entire financial chain can align toward collective disaster.