"the Fed bought assets generated at the peak of the bubble and they paid bubble prices."
We are talking about mortgages in the US, not houses in Australia. Check out the US house price index since 2008:
I would have to dig back into the Fed's balance sheets, but if my memory serves me, the Fed was buying MBS between 2008-10 (at the bottom) and much of the later purchases were US Treasuries.
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