When the housing bubble collapses, what will happen to the economy?

Question

Will the stock market collapse with it?

Answer 1

Doubtful the stock market will collapse but there will be a downturn. The housing market fuels the mortgage market, the construction market, etc so a lot of different markets are affected.

Answer 2

As long as you are not in one of those bubble houses, I think everything will be fine. The only people with enough money to afford those fancy dome things are CEO's anyway. I say we let them collapse, and put that money back into the economy.

The stock market will be unaffected. I don't see how the two are even related.