All that counts is your personal view of what value the stocks present at this levels. One needs to be ahead of the crowd in order to buy low and sell high, doesn't he?
How long it will take for them to realize it? What is there that makes it hard for "people around the world" not to see the problem now? Aren't they replenishing their funds by selling the assets of the failed banks.
Yes, McDonald sells it's junk food because it wants to get richer. People buy the junk food because they are hungry. And when people are hungry they think with their stomachs not brains.
It's ok for an average guy to be stupid and greedy. As a consequence those people didn't lose much money wise and went back to renting as what they probably did anyway before buying a house. It's not ok to be stupid and greedy for the government and banks. Their loss money wise is 10 times...
Actually it's a casino's fault that's why the casinos are smart enough to put all sorts of legal disclaimers (like 'Gamble responsibly') to protect their back.