Who should we blame?

An article talked about the increasing foreclosure these days due to the declining hosuing market, and suggesting that the government regulator may want to step up to strengthen its regulations on commerical banks. It implicitly (or explicitly) saying we should blame the mortgage lenders for their aggressiveness. I am not sure I agree with him with 100% confidence.

I think in this case, regulator has a role to prevent those agressive loan program banks offered. But more importantly, it is the problem of individual investors that did not face the reality. They know how much they make, they know how much they have to pay for the mortgage payment, they know how those aggressive loan programs work. They always have the right to NOT buying the house. They always have the right not to take those loan. They still take the risk. they have to pay for their mistakes.

The role of the regulator should strengthen the transparency of the mortgage contract's contents. The role of the regulator should provide full information on the impact of declining housing market on investors. I believe individual commerical bank should has its own discretion to tailor its mortgage program to fit its goals.

We should remember any trade involves two parties. It is quite inappropriate to blam solely on the sellers. the buyers should be blamed as well if they are true speculators, which I think many of them are.

The people really suffers are those who can afford the house at the "normal" price (that price follows the historical trend), but not the "bubbled" price. They have to rent an apartment, or moved to far away places to survive.

btw, I am not in this industry, there is no conflict of interest in shaping my opinion.