Idiot. Here is reality as I see it - Im not a big economics guy, so this may be incomplete, or totally wrong. Take with at least a cupful of salt.
Believe it or not, some people really don't make enough money, or have good enough credit to buy a house.
Some people who can buy a house, may not have the money or credit to buy any house they want.
When lenders sell houses to anyone, the laws of supply and demand take over, causing cost to inflate beyond actual value.
When investment banks ASSUME ("ASS" out of "U" and "ME") that the value of a home/land will increase with the cost indefinitely, they make risky decisions based on unrealistic scenarios.
When the proverbial rug gets pulled out from under them, they discover they spent more money than their holdings are worth.
Human sacrifice - dogs and cats living together - Mass Hysteria
anyway -- where this all starts is Fannie Mae and Freddie Mac -- Darlings of the Democrats, In the Commonwealth they are especially loved by Barney Frank.