Artificially deflated lending rates, 5 year fixed-rate loans, explicit government pressure to expand the mortgage base, and what happens 5-ish years after the interest rates start coming back to their long-term averages?

I remember back in 2004, some of my colleagues were all chatting about flipping McMansions. My housemates and I threw a party, and some poor half-drunk girl I didn't know was telling me that Warren Buffet was warning about a housing bubble and asking me, a stranger, if she and her boyfriend had made a big mistake in recently buying a house. I felt very uncomfortable on several levels trying to give her comfort. Going to a party without her bf and pouring her heart out while half-drunk to a stranger wasn't the biggest sign of looming trouble. There were long warning signs that things were not going to be alright. Hopefully she and her bf were able to ride out the crash.