Doesn’t some blame need to fall on whoever de-regulated this silly business to allow loans to be packaged and re-sold? That just turned the whole housing market into a big game of hot potato/musical chairs with the last bank/pension fund holding the bag the loser. Also I would say that whoever was doing the ratings of those MBSes deserves some of the blame as there were clearly bad loans in many of them. And the appraisers that went along with the game. And the mortgage brokers. And of course the buyers themselves.
It’s sort of like that South Park episode about Wal-Mart where they find the secret that keeps the company growing and it’s just a mirror reflecting whoever looks into it. There is plenty of guilt to go around…
