Utterly contradicts the headline. If dollars are confetti, houses which have some real value must be worth wheelbarrows full of said confetti.
Doom mongers never worry about the intellectual coherence of their allegations.
The housing crisis is demonstrative proof that nominal debts in dollars can be worth more than the real assets they are written against, which cannot happen if dollars are so oversupplied they have no value.
In fact, demand for dollars is nearly infinite at the present time, but only for safe investment purposes. Monetary velocity is non-existent, and therefore so is any pricing pressure. Large increases in free reserves in the banking system due to Fed actions have not been accompanied by large increases in total dollars outstanding (just the usual moderate ones), and money turnover has remained basically flat.
What the quantity theorist types never admit is that the value of anything depends on demand for it as well as supply, and the demand for money is not a constant.
There is a reason rates for riskless debts are very low and the dollar is strong against all currencies, and it isn't because hyperinflation is occurring.
It is a deflation. But men ideologically committed to slandering the Fed and the financial system cannot accept the existence of deflation in a fiat money system.
Deflation is poisonous to a consumer driven economy which ours has been forcibly mutated into by the NAFTA/GATT/Wall Street crowd. They realized that post-USSR there was more money in making American into dumbass consumer at national chain retail stores buying Chinese imports than to have him laboring away in manufacturing and agriculture
Deflation kills consumer demand because there is no rush to run out and buy something that will be cheaper next month. Thus deflation ruins "consumer economy" which was immoral anyway. Man was made to work, make families and think about God at least sometimes not be dumbass consumer flocking to malls which is just modern update of worship of the Golden Calf which ended in disaster a few times for the Hebrews