Think velocity. If you’re not familiar with it, go look it up.
Credit based on fractional reserves does not necessarily represent any asset.
Can you tell me which component of MV = PQ has changed because of the housing market? The velocity of money has been pretty stable for almost 60 years and while the Fed has tinkered with M somewhat, I still don’t see where the remaining funds have gone.
Supernova, meet black hole.
"There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved."
~~Ludwig von Mises