As a real estate investor, I lick my chops when I see news like this. But as a human being it's so terrible to see happen over and over again. Watch "The Big Short" if you haven't - everything will crash again.
A lot of people in this category have jobs, families to support, and so on. It's not like every investor is The Businessman from "The Little Prince."
If real estate investors took the moral stand you seem to be suggesting here, who exactly would be buying a home from a distressed homeowner? What money would be floating around to cover short sales and prevent foreclosures?
The only solution is government action; it's one of the big reasons we have a government, to fix things that "the invisible hand" cannot or will not. The problem is that our politicians are either totally corrupt or inept. So just like they failed to prevent the 2000s mortgage bubble, and the 1990s dot-com bubble, and the 80s S&L crisis, etc., they're going to fail here too.
In short, if you want to blame someone, the only people to blame are the voters.