The response to this thread has enticed me to respond to all. Re: "I, for one, clearly could not believe the sums people around me were paying for housing once I got back from Venezuela in the late 1990's". I was hanging in the Grenendines in the midd 90s and had many friends doing the Caracas life. Of course you were surprised. While life was violent it was very cheap. Re: "We carefully took stock of what we earned and made what I thought was a sound choice in housing cost only to see many friends of similar means in relatively better digs." I was raised to do the same and have. When people said my house was worth $350,00.00 I didn't believe them because common sense prevailed when you look at the place. Now that they tell me it's worth $200,000.00 the thought is the same. But combine a used car salesman, and someone looking at $1000.00 a month rent VS an interest only loan with a $1200.00 mortgage payment, and you get to OWN and voila. Blame the brokers amd the laws that let them exist. Re: "and people in California making $150,000 a year and buying $500,000 places in the Bay Area." Outside of the shakey income statement a steady $150,000 on a $500,000, while agressive is doable. Of course the interest would have to be reasonable and the external expenses (Taxes etc) accounted for. Re: "I'll now have to ante up some of my own tax dollars just to pay mortgage relief for those who didn't." I'm pretty sure someone in the past has done the same for you. Re: That's not any sane kind of Socialism; it's corruption. Welcome to the jungle.