In 2005 Ben Bernanke, now chairman of the Federal Reserve, did his bit to bolster the cosy American myth that house prices were a one-way bet. According to the New York Times he said strong fundamentals were driving the housing market before adding the oft-repeated refrain: "We've never had a decline in house prices on a nationwide basis."

So it is no surprise that consumers, egged on by cheap, easy credit, rushed into property in the same way that professional investors piled on cheap debt to buy financial assets. The credit party has now ended abruptly. There is pressure on Mr Bernanke to avoid bailing out highly paid speculators on Wall Street who got carried away during the boom.