Leaving aside the whole question of whether or not credit ratings are reliable (http://money.cnn.com/2007/08/20/magazines/fortune/ratings_ag...), you're right, funds need to be responsible.

But they also need to provide a certain level of return, and right now, housing is not the place to go.

Tech looks better now (because of companies like VM Ware and Blade Logic), and since there is no other "obvious" (for lack of a better word) place to invest, tech funds (including VC funds) will benefit.