Real eatate prices rose significantly, not because of the usual supply and demand but because of greed. People paid inflated prices for property not based upon it's actual worth but what they could onsell that property for. People lived outside their means on cheap credit, countries borrowed significantly more than their GDP figures could withstand, companies bought debt off other companies because they were greedy and could see big profits for themselves. Much like property, oil prices rapidly rose, again not because of supply and demand but because of speculators who believed they could make money. There was no shortage of oil. There won't be for a long time.
Did anybody serious believe that this bubble wasn't going to burst? If not you should have. While there are probably economists who strongly disagree I think you can compare a free market to Darwin's theory of natural selection where the strongest will survive and the weakest will fail. A bad business model can only last for so long before it gets wiped out..
Like a big night on the town the hangover is here for the greedy people who drank too much of the free booze.
Those who were smart shouldn't have to worry too much to worry about because you're probably sitting back smiling and saying "told you so" to everybody else.
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