How does this inflict “real damage on the economy”?
An excellent question.
I quite fail to understand why gas prices at $3 a gallon are cataclysmic, but housing prices at 5-10 times the median income are a good thing.
Only the first batch of "investors" into the housing bubble can win (provided they know when to get out) - sooner or later Mr. Ponzi's ghost shows up to crash the party.