Always, always, always blame the party that knew better or should have known better. The banks should have known better (though they had pressures from the government to make bad loans). The government should have known that government backed anything will be paid for by the government. Just ask the airline pilots that lost their pensions after 9/11. The borrower is also liable for not meeting obligations they requested. I blame them all, except for the regulation part. We shouldn't regulate stupidity.