George Packer refocuses on it:
We should be long past the point of assigning blame, or worrying about creating moral hazard, let alone rewarding "losers." Foreclosure is a national tragedy and a relentless drag on economic growth. Jobs can’t be created until demand increases, and demand won’t increase until consumers get out of debt, and housing is the biggest obstacle. If we had healthy institutions, the White House, both parties in Congress, the leaders of the biggest banks, and consumer groups would have sat down together and worked out a solution that keeps millions of people in their homes without wiping their debts completely clean. But we don’t, and so the history of the past few years has been written by Rick Santelli and Occupy Wall Street.