The housing bubble was created Capitalism in it's purest form. Capitalists got rich, actually super rich, loaning money. That's what capitalism is all about. This time it was different only in their ability to create the conditions which made their money-lending profitable. They bought politicians who controlled regulation of the money market. Once the regulations were gone, capitalists were free to do whatever they wanted. Capitalists made borrowing so easy, almost anyone who had a job could have as much money as he wanted to buy a house with no questions asked. As long as prices were increasing, capitalists were generating huge profits.