It all started with Regans just keep spending attitude and the me generation. I buy what I can afford. I remember bankers and real estate agent claiming we could afford much more home than we purchased 20 years ago. Today our home is paid off and we use our credit cards so not to carry cash, we haven't carried a credit card balance since we were married over 25 years ago. The problem is people are basically sheep and will believe whatever anyone tells them versus understanding what a zero principle mortgage or ARM really means and will cost in 1 - 3 years. I am just amazed at folks fresh out of college buying 800K homes and when ya go over ya find they cant afford to furnish more than one room of the house.