I haven't read all the posts as I was getting dizzy trying to figure out who said what, so I apologize if I repeat anything that was already mentioned.

Wagner...what about the stocks and commodities market? there are companies out there that release reports that will drive up or drive down the price, depending on the company's position.

buyers are the only ones that set the market. sellers and agents set listing prices to try and draw in as many buyers as possible. your home is worth only as much as the amount someone is willing to pay for it. appraisers determine the value of a home based on what has sold recently. underwriters decide on whether the appraisers assessment is accurate and if it's worth the risk to lend out X amount for the home.

I feel a lot of the blame falls on the bank...it's their fault for offering stated no doc loans...why did they make these loans? because they probably could make more money selling these loans on the secondary market. they were short sighted. the sub-prime market came about because banks saw that as another group of people to make money from. why in the world would you loan to someone who has a 495 fico? because you could charge them a ridiculously high interest rate, charge them 3 points w/ a pre-payment penalty, and they would love you for it because no one else will give them a loan. there's a reason why their fico is that low. falsified docs are created by scam artists and unethical brokers trying to make a quick buck. as a buyer, you trust the professional to guide you to the right decision. yes, it's ultimately up to the buyer to give the go ahead to falsify docs, but look at it like cheating on anything...if you can do it w/o getting caught, would you? most people would. our moral compass is completely out of whack when it comes to achieving the american dream. most will do whatever it takes as long as they don't think they'll get into trouble. again, short sightedness. as for having lenders being responsible for maintaining the value of a home, they don't have that power. a property's is only worth as much as a buyer is willing to pay for it. that's what lenders would look at when lending money for refi's, helocs, etc.

JonK is correct in saying that the common denominator is greed...there's a reason why it's one of the 7 deadly sins.