Housing Market Meltdown: Who Is To Blame?

By Dean Baker | bio

Surprise, surprise, surprise, the havoc in the subprime mortgage market is spreading to the rest of the mortgage market. Credit is tightening up at the fastest pace in decades and some of the high flying hedge funds are now bankrupt. This has sent the stock market plunging and house prices are falling in large parts of the country. We may not have yet entered the full meltdown phase of the housing bubble; still it is a good time to start assigning blame.