Were those "erstwhile free market types" in favor of Clinton using Carter's law to force banks to sell subprime mortgages in the first place? (Something that no friend of the free market George W. Bush thought was just dandy, but at least he didn't say anything as stupid as "I want to roll the dice a little bit more in this situation towards subsidized housing." but mistaking markers of the middle class for causes is very very stupid.)

Not that that is sufficient an answer, seeing as how many other countries also had property bubbles at the same time. Taking a step or six back, I see it going to the US running a huge deficit and the inevitable consequences of putting that sort of money in motion. In between are things like the IMF's insane response to Indonesia's short term liquidity problem when hot money fled it, which resulted in it's government/strong man being deposed, which the PRC took note of and acted accordingly.