Some of my friends and relatives ask me who to blame for their 401(k) losses, the $700 billion bailout, and the fact that they can’t refinance their mortgage.
There is lots of blame to go around: Homeowners who borrowed too much. Mortgage brokers who helped homeowners over-borrow. Institutions that lent based on anticipated escalation in housing prices, rather than based on the borrower’s ability to pay. Regulators who didn’t do enough to intervene and lawmakers that didn’t give them authority to do so. Investors who bought securities they didn’t understand.
