Just some thoughts on the original posters queries.
Regarding late entry into the housing boom, the point about missing out is certain. I think the element of trust involved,held by the individual buyers and encouraged while not sufficiently challenge by the media or the government, has been buried….in part the notion has been shouted down by the “responsible” in favor or ‘greed’ “stupidity” and the like.I am not denying,gullibility, greed and the rest of that.Trust was a big part of it.
I am sure some people were sensitive to the fudging in the liar loans. I am also sure they had doubts and heard warnings from many of us not to enter the market.
Many people had some thinking going on along the lines that… “if this is happening there must be a reason”. In the case of some, the fact that this is America…The most organized,powerful and important country in the world, running on complicated but probably sound principles, it can’t be wrong to go along with it… This is prosperity unfolding for me.
Some Immigrants in awe of this country and inpired by it’s wealth and various other less sceptical types were too “faithful” when the national leadership and biggest, smartest banks, and their “friend” the Realtor, threw money at them. They thought it must be somewhat in the ballpark of normal and there were just things that were going to evolve and protect them that the naysayer doesn’t see . While they themselves didn’t see it, it was only because they didn’t understand much about economics and business,afterall, the drums of persuasion had been beating for a long time and it was getting easier to borrow as the prices went up. There was an element of being warn down by this persuasion, that the “responsible” can’t imagine succumbing to… and Trust.