Is the credit crunch affecting you?

Fair enough, the government isn't directly to blame but I don't see any of the people who work for this government struggling to pay off mortgages or giving up holidays because they can't afford them or working their fingers to the bone to try to make some money just for the government to remove most of it from their grasp in taxes and bills. But then again, you don't see people on the breadline fiddling their expenses to such an extent that it warrants a full public investigation.
Banks, building societies and other lending groups certainly are to blame for advertising such fantastic sounding rates for things like credit cards and over 100% mortgages in an effort to draw people into the black hole of the never never. That stems from an decreasing amount of awareness in the financial implications of taking on such policies or credit cards. This can be attributed to the banks or other lending companies wrapping up all the contracts and paperwork in legal speak which you need an honours in commercial law to be able to understand. They just sign where required and hey presto a large some of money drops into their laps and they have no idea how interest rates, lending rates and other banking terms are going to affect them. Yes, I agree that in some cases it's a case of "get rich quick" but in most cases it is just a complete lack of understanding of what they've gotten themselves into.
For that, I do blame the government because if they are for the people as they say they are then they should have realised a long time ago what was happening and either put a stop to it or at the very least put into place some sort of plan to cap the amount lent or put a credit limit on cards depending on peoples ability to repay loan amounts or credit card bills. The simplistic view of "people getting greedy" doesn't really help the situation that a lot of us are finding themselves in.

I can't see how the gov are to blame as they never lent the money out in the first place. People simply got greedy, thinking they could make a fast buck through housing and overstretched themselves.