How does "I don't buy the idea that this is a crisis. Is it bad that some people have high home loan balances? Yes. But is it so bad that it's a crisis? I don't

How does "I don't buy the idea that this is a crisis. Is it bad that some people have high home loan balances? Yes. But is it so bad that it's a crisis? I don't see why." sound around 2008? The problem isn't that "some people have made bad choices" it's that we are lending money to people they will not be able to pay back. When people default on their loans what happens to the lenders who are ultimately fed backed banks?