The correct conclusion in my view is that we need to be pre-emptive in avoiding these types of problems in the future. Monetary policy should not be aimed at cleaning up a mess, but leaning against the wind to avoid the mess in the future.
Once you think that something is improbable and everybody thinks it, people modify their behavior in a way that makes it more probable. Everyone thought it was so improbable that so many people would default on real estate, it actually created a greater probability that it would happen because more capital flowed into that sector.
They tell us that the government can spend and spend without taxing at all, that it can continue to pile up debt without ever paying it off, because "we owe it to ourselves". Such pleasant dreams in the past have always been shattered by national insolvency or a runaway inflation. All government expenditures must eventually be paid out of the proceeds of taxation and inflation itself is merely a form, and a particularly vicious form, of taxation.
Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it.
Compound interest is the most powerful force in the universe.
Compound interest is the greatest mathematical discovery of all time.
Governments are like primitive cannibals feasting on a great treasure trove of sheeple. You can't force them out, and you can't vote them out. But you can sure as hell starve them out. When enough people pick up and leave, essentially voting with their feet, it accelerates the system crash.