I agree with your first statement but it doesn't appear that the powers that be are listening or if they are then perhaps they are powerless to do so. As painful as this correction will be for many mortgage holders and investors it appears that very little has changed in the mentality of the markets. With all the money being poured in by the worlds central banks and the Fed cutting rates it looks like the bulls are looking for any excuse for another run. If they do will the next fall be more severe? Like the sub-primes, ARMs are on shaky ground with a soft real estate market along with equity based loans. Can hedge funds and private equity funds hold their own as they cover mounting losses from high risk investments?
Individuals and communities need to educate themselves quickly as to the exact risk that they are exposed to. Examine your entire portfolio including 401k's and IRA's. Ratings firms and brokers alike have put many in risky positions, that if these investors really understood the full extent of said risk would be shocked.