But if house prices (and therefore rents) go down, people will need lower salaries for an equally comfortable life, pushing labour costs down, making housing cheaper. Man economics is easy
That all said, I'm not trying to be a lending market lobbyist. I personally avoid borrowing whenever possible, and don't even have a credit card. My contention is simply that current lending practices are the cause a lot of societal issues, but if lending did not exist whatsoever things would be substantially worse.