Yes, the government plays it’s part.
But so does the Federal Reserve and it’s fractional banking system.
Here is a link to a youtube that is about 29 minutes long that deconstructs the housing collapse, with a quick history of money. It is actually pretty funny!
The American Dream
http://www.youtube.com/watch?v=Kv2oCXbW4r0&feature=player_embedded
awesome!