Yes, I agree speculation increase the magnitude of the bubble. I’m not denying that. I’m just saying it’s not the “big part” of the problem. If it’s a big part, then removing the “big part” of the problem will reduce the problem considerably. Do you think it would? I don’t. However, If you remove the loose lending, you’ll reduce the problem considerably. As we see between 2006-2009. Now, looser lending is back and guess what, problem is occurring again.

Once again, they happen together but loose lending comes first. People don’t speculate until there’s loose lending. A cause B to occur but B doesn’t cause A to occur.