The problem is that if a lot of loan money were not made available to high risk purchasers, real estate prices could not have risen to the same level that they did. Sellers would have had to sell to borrowers at rates that they could afford.
There is an entire circle of middle-men who are complicit. Real estate brokers, banks and mortgage brokers, wall street companies that packaged the debt, bond rating agencies, hedge funds who bought the stuff at enormous leverage ratios borrowing short and lending long, and the operators of penions, endowments, and other "trust" funds who were seeking to maximize returns at "zero" risk.
The entire business was a gargantuan multi-trillion dollar money-making juggernaut.
There was an enormous group of liars and frauds in the middle of it all. Sellers, builders, and brokers profited enormously.
Those who are injured are first buyers who bought at high prices on terms they could not afford because the market manipulators had gotten them there, and investors who were induced to put money into these things on the belief that it was secure.
More generally, all of us are injured. It has distorted our economy and driven it in the direction of overvaluation and overconstruction of real estate rather than putting capital into productive enterprise. The cost of the bailout and damage to our international reputation will haunt us for years. The creation of credit dollars against real estate equity has driven up costs and forced all of us to buy with some level of credit that which we would have preferred to pay for with cash. Governments have built spending plans based on the increased tax revenues from inflate tax assessments, resulting in growth in bureaucracy and regulation as well as investment in services and construction of questionable value.
So no, the "investors" made a lot of bad decisions and are in part to blame for the resulting mess.
Your whole statement is very thoughtful and well written.
That's bad? You didn't answer why the investors are "bottom feeders", and you didn't point the blame squarely where it belongs: the Fed. The Fed was the reason investors could borrow short and lend long, the Fed caused the low teaser rates with their absurdly low short term rates. The market simply responded, but that doesn't make them "bottom feeders".