Powayseller, I wasn’t able to understand from your post whether you realized that I was just joking. Realtors are actually the last group I would blame (inspite of Lie-reah et. al). The fundamental cause was GREED of normal people. Everyone wanted 20% appreciation YOY and were willing to pay for it. As Galbraith says, at the end of every financial mania, finger-pointing starts, but rarely is there the acknowledgement that GREED of the participants is what set the whole thing off in motion. Sure the Fed deserves some blame – for being wrong in their deflationary concerns and keeping rates down too long, but the fundamental cause is still GREED.
