Housing was the problem in the Depression
A lot of people have a mistaken belief that the stock market crash of 29 was what lead into the Great Depression, but the problem was housing, not the stock market.
I have been consistent in my view that when I look at household debt, and when I did an analysis of the the lesser ability to get control when you are maxed out on low interest debt as opposed to high interest debt, well, I have been able to see how consumers manage to keep spending, hence my highly bearish perspective.
Safehaven had a post with a piece of historical date that I thought I'd share:
" "Real-estate loans, not failed stockbrokers' accounts, were the largest single element in the failure of 4,800 banks in the years from 1930 to 1933." Homer Hoyt. One Hundred Years of Land Values in Chicago. "