Michael,
Normally I will agree with you on most topics, but think about who these mortgage companies were targeting... "subprime"

First of all, most of these live in areas that have outrageous prices on real estate (examples you give...Miami, Phoenix, LA, San Francisco).

My 240K home in Houston is worth over three million in San Fran... I know, my Sister-In-Law live there and knows Real Estate.

There's know way I could own a home In San Fran with similar qualities (4 bedroom, 3 1/2 bath, detached three car garage).

Put yourself in their shoes for a minute.

You work at a minimum wage job. Your wife cleans office buildings in the evening and your oldest son pays you rent or helps with the weekly grocery bill.

This is if you "don't share" your apartment with another family.

You are trying to live the American dream of owning property, but for years, there is no relief in sight...

Until one day...

You find out that some mortgage companies are doing special deals for people in your target market.

Yes! It is possible for you to own your own home after all...

Also consider that most of these people have very little education and I'm willing to bet that they don't even know how to read, let alone a legal document created by attorney's.

Although I'm a die-hard Capitalist, I put a lot of the blame on mortgage companies.

I also blame the bleeding heart folks in congress that helped make this happen.

Let me ask you...

When you see someone get screwed by identity theft, do you blame the person getting screwed or the credit card company that didn't put safeguards in place that would stop identity theft.

To me, there are similarities...

Credit card companies will give you a card as long as you have a social security number and an address... this should be made illegal. There needs to be more stringent tests to verify you are who you say you are.

Problem is, most CC companies don't care as long as they get you signed up... Much like the mortgage problem right now, it's all about money.

Both industries knew/knows that one day the piper would come a calling.

I don't believe these victims are necessarily the the same crowd as the "get rick quick" folks.

Many of these folks are hard-working people that can't afford insurance, that can't afford to put away for retirement, they barely can afford to get a doctor when their sick...

They want to leave something for their children when they die (and they can't do it while living in an apartment).

I really feel some sense of pity for these folks. They aren't educated, they have a hard time understanding simple, common-sense stuff.

Walk in their shoes for a few days and you'll understand.

Like I said, I am about as anti-liberal, as capitalistic as you can get, but I do see how these folks were screwed (probably by listening to awesome copywriters and marketers)... ok, folks, put down the burning stakes... just kidding here.