What happened to the real estate market in the years between 2000-2008 What was the result of changes in the real estate market for people who bought houses with the intent of selling them for a prof?

Many things happened:
1) Our friends Bubba Clinton, Barney Frank and Chris Dodd forced banks to lower their lending standards.
2) Banks gave out loans to anyone with a pulse
3) Buyers ignorantly thought that housing prices ALWAYS go up
4) Buyers were not intelligent enough to understand what they were signing when it came to ARM's, zero-interest, etc.
5) Buyers thought that housing was an entitlement and income should have no relation to what you can afford.
6) HGTV had way too many show that glorified participating in an obvious housing bubble
7) Home owners used phantom equity in their home as an ATM