(Denny Crane: "Sometimes you can only look for answers from God and failing that... and Fox News".)
California real estate is a prime example. So many are living beyond their means by using their homes equity as personal ATMs. Keep believing their homes will appreciate at 15 to 20% a year.
From all the time I spend in California, it becomes apperant that many live in a constant state of delusion about what they expect to be provided to them and what their net value is.