...the Democrats (and many Republicans too) thought it would be great if every American owned a house, or a condo. Real estate prices seemed like they would never stall, and it seemed like owning a house was a cheap way to give people a never ending source of net worth. People would be richer if everything stayed the same, and the government simply gave them a house. What could go wrong? Well, the banks (who I support but they are greedy nonetheless) were thrilled with the idea of giving everyone a house. If everyone took a loan for a house, that was backed by the government, there was virtually no risk for them. So they loaned houses to everyone, because if anything went wrong, the government would pay for it! Investment banks got involved! They realized they could bundle these loan payments up into investments and because they were (supposedly) backed by the full faith of the United States, they were essentially as good as owning American dollars, except they were basically American dollars that you bought that ended up being worth more than you bought them for after a certain period of time. Everyone was getting rich, everyone had homes, and in general times were pretty good. I think we know just how disastrously this ended for everyone (bankers, homeowners, the government, etc, there are obviously exceptions)
Now I'd like you to substitute home ownership for a college degree, or health insurance, and I'd invite you to realize that the exact same process is taking place as we speak. And sooner or later, the exact same collapse will take place (in healthcare it will not be so bad, student loans may prove disastrous).
I know I answered your question in a strange way, if you have any questions or need clarification, I'd be happy to answer them.