[grudk]

I think the answer is 'yes.' The 'housing bubble' is really the result of a 'credit bubble' that has inflated asset values of homes, among other things (including collectors cars)

Americans have been spending more than they earn for years (negative savings rate), most recently by borrowing against falsely inflated asset values.

An adjustment to sustainable levels of spending will be painful for all. Gov't and banks are trying very hard now to keep the illusion of wealth going (trying to put a floor in housing, stocks). It remains to be determined whether or not they will succeed