No. of Recommendations: 3
The simple explanation for most bubbles and crashes is con artists and the easily conned.

I disagree, slightly. I think people and largely businesses were making pretty good decisions on about 15 years of a hot housing market and declining interest rates with low inflation, and didn't know or remember that a 25 year scenario could make their decision bad.

Heck, even the 1998 sub-prime crisis didn't really impact the average home buyer. With the Fed controlling interest rates in a regularly lower rate curve I made great money by refinancing my home mortgage in some cases every year with a 1% lower rate, while I was financing my kids college education off my home equity loan, as my home equity went up 10-15% per year.

I'm a bit older and able to remember longer periods of time, including times when my house value declined, so I sold my home about at the top, although I did get caught for about two months with an ARM that bounced to a much higher rate. If I hadn't made the decision to sell, I wouldn't have been in the ARM, but I was lucky.

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