I lived in Vegas at the time. I saw it for the obvious problem that it was. I told everyone in the area that the bust was going to happen, but everyone was blinded by the money they were making. The shock people had was both amusing and disturbing at the same time.

Funny somewhat related story; just as the downslide started in that market we made an offer on a house 50k below asking. The owner, an investor, laughed at us. After the bust, we had already moved away at that point, we saw the house finally sold for something like 100k to 150k less than our low-ball offer.

Another somewhat related funny story; went to an open house and told the realtor I was worried over falling house values before deciding to buy. We were told house values don't fall. Didn't bother to point out to her that the for sale sign out front had a "reduced" sticker on it.

I have more, but I don't won't to be a bore.