The coach is to blame because he is in the position of getting his players to win. This is what he is paid for. Although the players are technically at fault because their actions cause them to win or lose, the coach is the person that teaches them moves and maneuvers.
It can also be the players, but I think the coach is the one who is supposed to teach the players how to play the right way. Happens this coach was probably ineffective and thus Brazil lost to Germany for this reason. To blame it on either can be bad too.
No, Brazil's coach is not to blame for the loss to Germany, because the coach can only work with the team that he has. Many of Brazil's prior matches were very close, and were only won by a little bit. Germany just had better basic ball handling skills. They just outplayed Germany.
The theory that the Brazilian coach should burden the blame for the complete beat down that Germany put on Brazil yesterday is absolutely absurd. Coach Felipe Scolari has already accepted blame for Brazil's worst loss in World Cup history but should not have, Mr. Scolari did everything a coach needed to to prepare for a home match that gave Brazilian footballers every advantage to win. Alas, the one thing he couldn't give them was heart. They had none. From the opening whistle, the Brazilian players were heartless and never showed up for the single most important match they'll ever play in.
The coach is not to blame for the loss of Brazil. The player's are ultimately responsible for the defense and how many goals are scored. The coach's performance could have been improved, but the final outcome of the game is ultimately the fault of the players on the soccer field.