A lot of it also had to do with bad incentives in the financial system. For example, if you give someone a bonus based on the amount of shitty loans they can make guess what, they make shitty loans. And if you allow banks to securtize the loans ..... At best it produces the capital gain you can make on it if the value goes up. If I borrow money to buy any other asset as an investment like Gold or Stocks I don't get to write off the interest expense. Why are homes special? ...