A very good question and i will be glad to respond.
You correctly mention the predatory lending phenomenon and massive foreclosures, as a scam that robbed many people.
However the answer is, as you will read, that it is capitalistic - socialism that has destroyed those people, and not capitalism, because true free market capitalism does not exist here.
The fact is that socialism - government intervention in the US housing market - in the form of excess money issuance, artificially low rates and existence of GSE's has created the bubble.
Only the government is responsible for hyperinflation in housing and all subsequent dislocations. And what is the definition of socialism ? - Government intervention in the economy.
Thus we can conclude that housing hyperinflation has been caused by socialism.
In a "free market capitalism" real estate bubble would have never occurred, because nobody would lend to people that have no ability to pay and the market would adjust interest rates to a level that would prevent hyperinflation from occurring.
In a "free market capitalism" the poor would simply save for most of their house instead of signing up for predatory loans, because the prices of houses would be constantly stable, there would be no panic to buy, and there would be no inflationary destruction of savings.
Many poor signed up for those loans out of pure desperation, afraid of further government-sponsored hyperinflation and by being pushed by scamsters who would later sell those loans to a socialist government institution or a foreign government or a hedge fund guaranteed by a socialist "greenprint put".
The enemy is not capitalism, but socialism, more specifically a version of capitalism that is characterized by privatization of profits and socialization of risks.
What we currently have in US is a version of capitalism that is worse than socialism itself. What we have here is a phony, corrupt, fraudulent capitalism aka "socialism for the rich " characterized by fraud and interplay of Fed, Wall Street, banks, Goldman Sachs, Fannie Mae and others.
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