All the necessary preconditions are present. However, many people were speculating with margin, and when the bounce back rally came, few were left with uncalled margin positions. Few saw this as the one last chance to bail out. All during the years following the 1929 crash until the average hit bottom, there were mini stock rallies. Also these rallies, especially the first and biggest one, were accompanied by great investor enthusiasm.
Generals always prepare to successfully wage the last war over again.
The bottom of the DOW in 1932 was in the 30 area. This was a factor of over 33 times. Indeed, in the case of debt, the situation has been compounded not corrected. It is entirely possible that in the next recession the debt liquidation phase could come back with a vengeance to make up for lost time, i.e. the last 10 years. The real estate boom did not end in 1925.