they were begging for someplace to earn a higher return and this was the seemingly perfe ge of secured lending at a slightly higher yield. it was a figment of our imagination. >> doesn't that suggest there is something all of the citol allocation system? that is a, quote, capital mket where the capitol ends up? it doesn't producenying. >> while, clearly we had a huge problem in capit allocation in this country. how you try to fix that is kind of over my pay grade. [laughter] >> a very important question. >> i will just say one of the things also struck home with me is something that really knawed at me. by a lot of historical statistical measures, housing prices were getting out of line with historical relationshipso income starting about 1998. by two thus three, 2004, i think by 2004 shortly houses prices on average had risen about 40% beyond inflation. and as you say, family income for thet part were flat throughhat period so you have familier been stretched more and houses going up more. itouldn't go on, couldn' possibly and there were lots of people pointing this out. merrill lyn,