Since it was not possible to increase the housing supply in such a short time, the result was that it led to increases in home prices. So much of the liquidity in America really went to raising home prices. It led to a culture where many thought prices would not go down and end up over borrowing. Such a situation is not new. It also happened in the UK during the 1990s.
– Charles Schell, professor of University of Manchester May 07, 2008