The U.S. housing bubble in the mid-2000s was primarily fueled by subprime mortgage loans — loans given to people with low credit scores. After reaching their peak in 2006, home prices plummeted over the next few years as the bubble collapsed. The resulting foreclosures and declines in residential investments contributed significantly to the 2007-2009 recession. Warren Buffett and Charlie Munger warned against "easy lending" in 2005, but like many others, did not foresee the devastating impact the housing crisis would have on the economy as a whole.