7 - People refuse to believe that the asset class could have the possibility of a bubble I'm not so sure that people refuse to believe. The clip from Barney F

7 - People refuse to believe that the asset class could have the possibility of a bubble I'm not so sure that people refuse to believe. The clip from Barney Frank is interesting as it shows how the blow hards on the hill put a "its for the people" spin on their policies. Now maybe Barney Frank is actually in it for the people and simply does not understand anything about economics and credit markets. But of this I am certain: if you look at the very long list of interests that lobbied for extending more credit to homeowners, the list does not include "The lobby for irresponsible middle-class that want to buy jet skis". The bubble was created by a multitude of interests that all profited from extending credit. Its not that they didn't believe they were creating a bubble. They simply did not care. This is the same with the dot com bubble. The people committing fraud knew very well they were lying, but it was making them rich or possibly so, and this sort of fraud is hard to pin down and prosecute. The net effect of item 7 is the same without regard to my perspective. The ability to keep something like this from happening again may matter whether it was a matter of "belief" or "greed". The greed part can be solved by separating the politicians from the money. As for education. There are probably a lot who refuse to believe that some aspects of education are unnecessary.