Even though I spent a career in banking, I can't answer that.

Here, try this simplified scenario and try to answer it yourself...

The credit exposures that have now lead to massive losses were all based on loans to U.S. citizens by U.S. lenders, secured by U.S. real estate, packaged and resold as mortgage-backed securities by U.S. investment banks, which were risk-rated by U.S. debt rating agencies and insured by a big U.S. insurance company. On top of that simplified scenario, a wide variety of complicated credit-based derivative securities were designed and sold by U.S. investment bankers to buyers who were told that the derivatives would either enhance returns, limit risk, or both. Of course, no one wanted any of these securities to fail. Even the smartest credit analysts and risk containment officers at major U.S. financial institutions weren't able to simulate or project rhe losses that could occur among the complicated, intermingled and interrelated financial securities.

Then, a lot of the foreign banks decided to get in on the action. Wall Street investment bankers, financial advisors, etc. encouraged banks, companies and individuals to purchase these securities or derivatives or serve as counterparties to some of the derivatives. They almost cerrtainly couldn't explain the real risks either, but they could point to the high ratings given by Moodys and Standard & Poors, the U.S. rating agencies, and the fact that the snart U.S. bankers who created these instruments were heavily exposed and must know what they're doing.

In a couple of paragraphs, I'm guessing that pretty much sums up how a lot of the foreign banks, companies and individuals got involved in our mortgages, mortgage-backed securities and their associated derivatives.

So, given this description, should the foreign accusers of the U.S. been more careful? Sure? Were they greedy as we were? Sure. But in the end, they were debt instruments made by U.S. borrowers, secured by U.S. houses, created by U.S. banks and sold by U.S. investment banks.

Is the rest of the world justified in blaming the U.S. for their huge losses? You be the judge.