First, I have no sympathy at all for those who tried to get rich quick by "flipping" houses with no money down interest only variable rate mortgages. They were gambling and lost. It's as simple as that.

As for the other category of sub-prime loans, namely borrowers with shaky credit records buying homes to live in, I do have sympathy. But the current crisis does not affect them any more than if it did not occur. Either they can make the payments or they can't. If they can't make the payments due to job loss or health care, how is that different from homeowners who were prime borrowers and then lost their jobs or got sick?

The goal of a home for eveyone is worthy, but has no connection with the bursting of a speculative bubble.