No way to say this politely, so...
Bullshit.
I don't have time to go into the details, but the banks did this to themselves, in five or six different ways.
A good site to start with would be www.minyanville.com.
Full Disclosure: The models used to define the tranches of risk were explicitly derived based upon the assumption of monotonically increasing property values and stable interest rates.
Cheers!
And the banks definitely made mistakes and are paying a price for it - but that is absolutely no reason for any decent human being, let alone any pro capitalism conservative, to be happy about any of it.
We want them to succeed. When instead they fail, it makes all of us a little less well off than we might have been. It benefits us in no way whatever. This is simply an understandable tragedy, like a car wreck. If I came up to your car wreck rubbing my hands with glee and chortling "it serves you right, you were driving too fast for the road conditions you bastard, hope you are paralyzed for life!", would this be excusable if less than perfect driving on your part was partially responsible?
This is pure class envy spite and worth of John Edwards. It does not belong on FR.