> it should seem surprising that borrowing money to put it into real estate will help the economy to recover Usually that's right. Since there were a ton of

> it should seem surprising that borrowing money to put it into real estate will help the economy to recover Usually that's right. Since there were a ton of MBS (and CDO's etc) based on real estate, there was a lot of incentive for money to flow to individuals and reverse the crash. Now that the banks have delevered, a crash in real estate would not be the systemic event it was in 2008. Of course, the bagholders would be those holding the assets.