There are simply two groups to blame.
First and foremost, the people who took out mortgages that they could only pay by the skin of their teeth and until the rates reset higher. There used to be this thing called personal responsibility, but that has been removed by the second group.
The politicians who use their power to bully banks into making these bad loans, so that people will think they care and pay them back with reelection.
The beauty of the free market is that if it makes good business sense to loan someone money, a capitalist will do so without regard to skin color, religion or anything else. Good business is good business.
When politicians start telling business what to do, nothing good will happen from that point forward.
I also live well within my means, as I always have. When I moved back to the KC area about ten years ago, my real estate agent asked me if I was pre-qualified. I said that “No, I was not prequalified.” She acted upset and didn’t think we should look at homes until “we” knew what I could afford.
My response was that I planned to put over $100K down on a $225K house, and that I made $X amount of income, so please show me some $225K houses.
Her reaction was astonishment and confusion, and explained how she could qualify me for houses at three times that amount.
I said thanks, but no thanks, and away we went to buy a $225K house.