If I remember there was no post crash property crash in Japan because the banks colluded. In Thailand post '97 this was definitely the case. Just throwing out the possibility for discussion that this could happen in Europe maybe and perhaps even more likely in UK where you have a very small number of banks and who have balance sheets that won't stand real prices, A govt that doesn't want property down and a situation where one bank can prevent a house sale going through by refusing a mortgage somewhere in the house 'chain'. Non chain buyers are a rarity. So if there is no clearing there is no end to the recession as per Japan and Thailand each with their lost decades ++ Edit: Just re-read Picaso's post on the reality in Spain, but will keep my original post up for any further comment.