"It was the peak. It was the embodiment of business success," Connelly said. "We underestimated the bubble, even though deep down, we knew it couldn't last forever."

Seen in the best possible light, the housing bubble that began inflating in the mid-1990s was "a great national experiment," as one prominent economist put it -- a way to harness the inventiveness of the capitalist system to give low-income families, minorities and immigrants a chance to own their homes. But it also is a classic story of boom, excess and bust, of homeowners, speculators and Wall Street dealmakers happy to ride the wave of easy money even though many knew a crash was inevitable.

From the archive:

The bubble cycle has replaced the business cycle.

And also:

If Schnabel is a surfer in the sense of knowing how to skim existence for its wonders, he is also a surfer in the more challenging sense of wanting to see where something bigger than himself, or the unknown, will take him, even with the knowledge that he might not come back from the trip.

Finally:

What the company is trying to do is prevent the passengers who can pay the second-class fare from traveling third class; it hits the poor, not because it wants to hurt them, but to frighten the rich ...

The Bubble