it is absolutely over the top. but sadly how things shake out. history repeats itself, i am afraid.delbified said:govt insurance of low doc loans was a wealth building strategy of the... govt. the idea was to encourage home ownership amongst low income earners, partly to help alleviate the welfare burden when they retired. the theory was that even if they defaulted on the loans, they would still come out ahead in a rising property market. the problem is this contributed to a price bubble and eventually, a falling market and disaster for everyone. like most attempts to manipulate the market through regulation, it failed.
then the media blamed it all on soulless, greedy multinational companies and everyone nodded sagely to each other.
saying that failed govt policies are the fault of private industry who "made them do it" is a bit over the top.