> when housing markets collapse, the economy goes down and people loose jobs. I believe the causality goes the other way around. Economy goes down, people lose

> when housing markets collapse, the economy goes down and people loose jobs. I believe the causality goes the other way around. Economy goes down, people lose jobs and then the housing market collapses. It's funny to keep a bubble inflated to protect people from their mistakes. People always get overleveraged (encouraged by the government and the banking sector) to buy real estate when the economy is doing fine, what else could one expect to happen when things go south?