I blame both sides in Congress for forcing banks to lend mortgage money to those least able to pay it back. I lay it at the feet of Congress that our banks tried to sell off the bad loans in packages overseas. (If you had made these loans would you wait for the borrowers to default? I think not.)The present destruction and rubble on the financial highways of America and the world are caused by the US Congress messing with the system.
When you dig into how he whole works - the entire mortgage business - the excesses and their scale were only made possible by how far stretched, between assets and liabilities that Freddie and Fannie were allowed to become; which was only possible because when the warning signs were there the Democrats refused the reforms that would have limited the risks of Freddie and Fannie (which would have vastly limited where the real-estate bubble could market most of it’s mortgages).