So Who Is to Blame for the Housing Mess and Oil Prices?

"Although the high rate of delinquency has a number of causes, it seems clear that unfair or deceptive acts and practices by lenders resulted in the extension of many loans, particularly high-cost loans, that were inappropriate for or misled the borrower," (Fed Chief Bernanke)

Northwest Airlines is leading a group of airlines seeking a federal probe of speculation on the oil market. Northwest and their coalition contend that speculation may account for up to $30 of the price of each barrel of oil, currently around $145. Notably, Warren Buffet and other investor blame liberalized trading rules hidden in the Commodities Futures Modernization Act, which he claims lifted too many restrictions on oil trading and allowed for too much speculation.

In both cases, it would seem we have a situation where relatively few enjoyed the benefits of some shady business practices, while the many feel the pain when the bill comes due. Reward is privatized. Risk is socialized.