I have to agree with Josh. The ultimate buyer has to take responsibility for his actions. And he will, as prices fall, loans adjust and jobs are lost.

I think a lot of folks got caught up in the runaway YOY double digit increases in housing and fueled the fire, by taking risks they wouldn’t normally take. It was classic mob psychology in action.

No one wanted to miss the party and people became smug at realizing easy gains (not only in profit from home sales but also in lending fees, real estate commissions, construction contracts, etc.) Flipping became a national pastime (heck there was even a TV show about flipping) and folks forgot the real reason we build houses, to live in them.

“Integrity is what you do when no one else is looking.” You play, you stray, you pay.