Eavis specifically blames former Fed chair Alan Greenspan for keeping interest rates too low for too long. Low rates helped spawn the housing boom.

"Those rate decisions showed that Greenspan had chosen to use the housing market as his main instrument to prop up the economy after the 9/11 attacks. Using monetary policy to encourage a rise in home prices would be a highly unorthodox move for a central bank. But evidence suggests that Greenspan was overly keen to use housing for exactly that," Eavis writes.

Recounting how Greenspan encouraged the use of adjustable rate mortgages (ARMs), he writes, "Greenspan gave a speech that blessed the creation of new loan products, including subprime home loans."

The investments initially earned billions and, as such, became a monkey on Wall Street's back until it was ripped off by soaring numbers of failing loans.

"And let's face it, with their nonstop marketing on the radio and the Internet, they're easy to scorn. They made millions, and as pure middlemen, they will feel relatively little in the way of consequences -- aside from a sharp drop off in business," Eavis writes.

Calling rating agencies' work "financial alchemy," Eavis says the raters are too often influenced by the investment fund makers and were under experienced in the new subprime based funds.

"The shortcomings of the system became blindingly apparent in July, when Standard & Poor's and Moody's abruptly downgraded nearly $6 billion of subprime-mortgage-backed bonds. Many of the subprime mortgages backing the bonds were less than a year old. That means the rating agencies had little idea about the quality of those loans when the bonds were issued," Eavis wrote.

Ignoring common sense, borrowers allowed themselves to be overwhelmed by low-interest rate carrots, TV shows promising real estate zillions, Web sites revealing home value jumps, offers of overnight home ownership and other come-ons.

"Now many will pay dearly for their poor judgment -- losing their houses, having their credit ruined," Eavis writes.