Perhaps the problem was that we were not listening to the right people? In this post you will see Peter Schiff talk to the Mortgage Bankers of America back in 2006. He outlines with alarming accuracy exactly what would happen in the future as a result of how credit had distributed, the way interest rates were manipulated and the coming fall out in the property market. There are 8 videos in total, you can find the second one here and then watch the others in the youtube panel which will be on the same page (part three etc.)