What if, for a moment, you take all currencies, stock and commodities… as commodities. All have a somewhat limited quantities (artificially as well as actually). Then consider that the housing crash destroyed a large portion of the ‘dollar’ commodity (no home ATM, defaulting mortgages, CDOs/MBSs going south). This means that dollars became more ‘rare’ against commodities like gold and against many other currencies.

The second effect that destroying a large portion of the currency through a housing crash would have is to make dollars increasingly more valued and therefore discourage investment… in anything other than the currency itself(deflation). If your dollar will buy you 1 of something today, but 1.2x of the same thing in one month. What type of decision will be made?

Will ‘printing’ more money reverse this? How much more money will have to be printed?
NOTE: Gold is an inflation hedge, but not a deflation hedge.