Even if one feels certain that a bubble exists, it’s impossible to prove and there will many who will say you are wrong (this time it is different). The systemic importance of house price cycles compared with other asset price cycles The potential risks of asset price bubbles tend to vary across asset classes.
Research by the IMF has shown that housing busts are, on average, twice as costly in terms of output losses as equity price busts. This reflects the higher exposure of banks to mortgages than shares. A  BIS central bankers’ speeches  1  key conclusion of literature on historical financial crises is that they tend to have worse outcomes when banks are distressed.