Yup. They're all bozos on that bus.
You're gonna eat those words.
Curiously, none of the doomers have cared to make an exact prediction for when the doom will come. One economic Eeyore here has been wrong since 2003. Maybe you'd like to be the first to tell us exactly when the end will come? :^)
A Capitalist system MUST have retractions to go along with expansions.
Do you recall when brought us Adjustable Rate Mortgages (ARMS)?
It was 17% 30 year fixed mortgages back in 1981.
Offering 100% financing on over-valued real estate is a castrophe in the making. For both the investor money behind the 2nd trust loan AND the mortgagee.
After a 5 year real estate boom with unprecedented appreciation, we're overdue for a correction.
Many people aren't able to sell because they lack the funds to bring to the table to cover the selling costs. Their options are to request a "short sale" from their lender(s) or let it go to foreclosure.
Now, if you're telling me that's just an example of redistribution of wealth, okay...but many people are going to ruin their credit and borrowing power
It's already happening (see previous replies). How far it will go is anyone's guess. But the coming recession will be prolonged and deep...as bad or worse than any recession on record in the last four decades IMO.
Not true. Ex-Texan has maintained for the last 4 years that it is coming in the next 6 months and housing will fall 40%. Of course, 4 years and about a 3% drop later he is proclaiming himself right.