I agree. However, your leaving out a large part of the debt structure. Well, you point to it a bit "They then made bad economic decisions based on the false i

I agree. However, your leaving out a large part of the debt structure. Well, you point to it a bit "They then made bad economic decisions based on the false idea that it was real". If it were only values of homes that dropped, it wouldn't be so bad as those assets are still valuable in that they are standing homes and can be used without regard to their value. There is a much larger debt bubble of more "perishable" product in wide ranging industries (supply chain, international investment, etc) some of which originated based on real estate value. The Fed has clearly staked out its path. Nowhere to go now but to continue down it.