It's worse. IN the late 1980s you didn't have the same kind of investment in real estate going on by amateurs and you didn't have the wacky lending schemes.
I am not so sure that is true.
I do agree about the financial instruments but it was untrue that amatures werent in the housing market in the 1980s
In the late 1980s lending institutions were worse financial shape that they are today.
Also the decline of the defense industry in So Cal made the poping of the housing market worse than would be the case today.
Everything Ive seen said a bubble poping will not be as bad as it was in the period 1990-94
Reason is even in bubble areas the price of a home divided by disposal income while rising is not as hig has it was in the early 1990s
Also dont forget the 1986 tax reform act made it no longer possible to deduct mortages from income taxes for more than one home.