answer:Well, yeah, but let’s think about it. What makes prices go down? A lack of demand. One reason for a lack of demand is because no one can afford anything. As you point out, if no one can borrow the money, no one will buy houses. Demand will plummet. Houses will go unsold and fewer people will own houses and fewer houses will be built, and the economy will start deflating. Prices would be lower, but far fewer people would have houses. All of us would be significantly poorer. This is the power of credit. It says that we have faith in each other and faith in our economy. We believe it is safe to extend credit because we will make money in doing so. The economy will grow and we will all be better off. Would you rather have a home that costs more or no home even though the homes cost less? It’s a good question that raises a number of interesting issues. However, if you understand the principles of supply and demand, you can often think this stuff through on your own. Just ask yourself: What happens to supply? What happens to demand? That’s all I did to answer the question.