I think we’re all in for a world of hurt. When I sit with family and friends, we inevitably end up talking about the economy and I have to tiptoe around the subject just so I don’t alarm them. Not because I’m on this site which I do lurk, but because my industry was in the front line and part of the problem. You’d be surprised with the disconnect I see day in and day out, the nice older lady that bought up north in Cameron Park for $650K with $300K down and an appraiser tells me that the house is worth $450 max, or the Option Armed couple in their late 50’s who have 3.5 years on the loan before it recasts, just a couple of examples.
For anyone to think this won’t affect you personally, is what I mean by disconnect. The run up was exuberance and hubris, and downturn will be the same, but from a different group of people that feel they’re well insulated. And to state that ‘Well, I’m ok.’ Unless you have billions and can afford to buy a part of Patagonia, you are part of this network.
