Gotta admit that there is more than a kernel of truth in that last statement. If prices hadnt gone parabolic at the end of 2003/early 2004 we would be in much better shape. Around me prices literally jumped $100,000 on just about every house and condo between Thanksgiving 2003 and Valentines Day 2004. It was insane. If that hadnt happened and we had continued on a more modest trajectory I beleive the unwinding would be done already. After that we were stuck with these crazy prices and lenders got more and more aggressive making loans to maintain that level. When qualified buyers at those prices were no longer around in big enough numbers they found ways to create loan products for unqualified buyers. From 2005 to mid 2007 loans were made that could not be repaid by the borrowers if the interest rates were 0%. Hell they couldnt ever re-pay them if the interest rates were -2%. Crazy times indeed!