The housing bubble was wrongly associated with a glut of housing. In fact, the core cause of the housing bubble was a lack of housing. Revisiting the events of the bubble and the financial crisis with this new understanding lays bare the tremendous damage that has resulted from the public policy reactions to the housing bubble. Rather than tightening monetary policy and credit conditions, those policies should have been loosened or maintained. Tightening credit and money was the cause of the financial crisis and the tepid recovery from it. Working class and young American families have been affected the most, and we owe it to them to reexamine the policy decisions of the past decade in a new light. This program will challenge your audience with a conceptually and empirically rich new framework for designing the most prudent and stable policy frameworks moving ahead. This is relevant to financial regulators, housing policy, and monetary policy.