I think even the Fed now agrees that we're in a bit of a jam regarding credit issues.  The subprime meltdown is no longer "contained" (was it ever...except in the Fed's fantasy world?).  This latest report shows evidence of more spillover as bankruptcy rates climb and credit card defaults grow. 

"Part of the reason more people are filing for bankruptcy is falling home prices. Standard & Poor's reported Tuesday that U.S. home prices fell 3.2 percent in the second quarter, the steepest rate of decline since 1987, when it began its nationwide housing index. When home prices depreciate, it makes it harder for many homeowners to access cash through refinancing their mortgages. Some homeowners, especially those who got stuck with high rate loans, can't make their mortgage payments."  However, this article points out that the nation is in credit peril because "consumers continue to feast on a diet of debt..."  http://www.businessweek.com/ap/financialnews/D8RA8JLO2.htm

Yes, blame the consumer for getting in over his/her head.  It's irresponsible to borrow without the ability to repay (with the exception, of course, of the unforeseen and uncontrollable, such as a death in the family).  When the debtor can no longer make payments, he/she suffers with poor credit, judgments, garnishments, etc.  However, it's equally irresponsible for banks and creditors to hand out money without properly assessing the borrower's ability to repay.  Credit card issuers are notorious for this.  So if you're a credit card company, your tears of unfairness, losses and increased defaults are wasted...you ask for it and (like the consumer) you should pay the price of your business decision.  So why is it that politicians insist on protecting businesses like the credit card pushers who make bad decisions?