Report Admission When Wrong in Anecdotals Posted May 27, 2013 The only way to get a meaningful nominal crash is for there to be less money in circulation. Which can only happen if significant amounts of debt are paid back... which is literally impossible. A big mistake people make is to compare what we are going through now with the depression of the 1930's. A stock market index is NOT THE SAME as a house price index. People need houses more than they need stocks. In the 1930's the leveraged investors were generally wealthy speculators who could easily close their accounts and pay back the debt... they had the liquidity to do so. With the current house (credit) price bubble people are simply unable to pay down the debt. If someone has taken out a 200k mortgage on a semi in the home counties they are not going to be able to pay back the debt. So there will NEVER be a nominal crash. The best people with an interest in housing themselves and their families can hope for is for there to be some serious land reforms such as a Land Value Tax or similar. The only market-based solutions would be a repudiation of the fiat currency by the population which is in effect a hyperinflation event. If that doesn't happen only a true banking crisis would result in house price falls. This would mean they would need to let the banks fail. Which as we have seen is unlikely.