Dodd, Franks, et al, authored this scenario. Bush and others sounded the alarm but were rebuffed; Congress thumbed their nose at those who were calling for regulatory oversight. I place the blame squarely on all who created this morass, which seemed to instantly appear right after McCain said that the economy was sound. Those who are trying to fix it are only responsible for making the wrong decision about the aftermath.
Now, we (the taxpayer) was responsible for backing the loans. I can see why we would have to bail the bad loans out. But how are we responsible for GM, Devolpers, and the like? Bailing all the rest out is not a free market.