I understand your first three paragraphs just fine. That makes perfect sense. The fed can easily crash housing prices. I can also see how they can crash any

I understand your first three paragraphs just fine. That makes perfect sense. The fed can easily crash housing prices. I can also see how they can crash any large purchases financed by credit: cars, machinery, etc. I can see how they can stop growth, how they can crash companies that have overextended. But I cannot follow how the prices of goods and services come down. I'm not even arguing that they don't come down, I just can't follow the logic.