Good analysis of the bust. The main culprits: the Fed and Congress.
Illustrating the Fed's failure is this graph showing the national median housing price ratio to the median annual income. For more than twenty years, this ratio moved in a narrow range between 2.9 and 3.1. This range held through several recessions, wars and expansions. Beginning In 2001, the ratio climbed to 3.3, peaking in 2006 at 4.6. This can only be described as a stunning increase for this long used indicator of housing affordability.