Go one step further Cogsci. You might suggest that it was the rating agencies who were complicit in rating the debt. It then gets distributed to investors. Those buying the debt might be held accountable. So all in all if everyone is trying to make as much money as they can buy buying and selling securities on the backs of the homebuyers and originators then wehn it fails to produce profits in accordance with expectations then let’s jsut call it waht it is . A BAD INVESTMENT.
Over the long haul I think that subprime loans are going to reemerge. Thjey will be written with tighter underwriting standards and theere will be investors will to take riskes to increase there rate of return. And the cycle will start all over.