B-b-but that fine Mr. Ponzi was a player in the real estate crash of the 1920s. He would never get involved with anything dubious...
I've had this discussion with others here. My theory is that certain home owners are the next Argentina. The market crashes, but the banks will hustle to do work out agreements -- re-structuring the loans -- as to not take a loss. Some people may walk away from a $500,000 mortgage on a $275,000 home, but not many.
I'd like to add another factor to the mix before I join the boss in bed. I see a trend in our area to three income purchases. Grandpa or grandma moving in with a working husband or wife. Or working kids in their 20s. Loans being based upon three incomes.
It isn't possible for the entire housing market in the USA to crash.And,yet again,I'll reiterate the salient fact you are ignoring...real estate prices go up and they go down. I have lived through this many times over and I am not ancient.Real estate is a commodity,just like pork bellies and gold and soy beans and all kinds of other things. And like them,goes through natural cycles of ups and downs and booms and busts.Actual real estate BUBBLES are really quite rare and more often than not,are area specific.