Do not blame yourself.
You were projecting possible outcomes based on the way cap[italism normally works.
But the moment the BANKS were at risk, then socialism for the rich reactions went immediately into effect.
The machinations that the FED and TREASURY went though to save the banksters from complete meltdown were outside the normal range of economic response.
FWIW, the banksters are still sitting on debt instruments of dubious value and ignoring that fact because if they acknowledge it by writing them down, then their outstanding debt-leverage is way out of line with the CAP rates.
Look, the median housing price in the USA is now about $150K down from about $180 (you might check that, it may have been higher)
Meanwhile the median family income has dropped down from about $57K to about $48K in the last three years or so.
IF the standard of income to house price ratios that existed for generation went into effect, then the median house price in the USA OUGHT TO BE about $100K (TOPS!!).
And if the market is truly corrected that means that the value of RE still have a might long way to fall, thus making those debt instruments that are based on those RE valuations completely overpriced.
The only think keeping these banks asolvent is the fact that the market has seen the government take extraordinary (posdsible illegal) steps to shore them up.
TARP was really the promise by our FED and Treasury to keep those banks solvent.
The US taxpayer took on responsibility for these bad debts the banks had while allowing the banks to keep the good debts.
If we'd allowed the game to be played by the standard rules of capitalism there wouldn't be a bank open in the USA.