I don’t think the stagnation you describe can exist for one reason: the outstading debt on all those properties, whether being maintained by owner, builder or lender, must continue to be serviced. At some point somebody has to decide they can’t continue to hemorrhage cash and take the loss. Whoever the bagholder is will go under. I do not think bank failures are out of the question at all, and HAVE already occurred.

It has happened before, why do we think it can never happen again?