I agree; there’s a global housing price bubble and credit bubble. Monthly payments on all that debt are NOT going to be made – people won’t have enough income/savings to make the payments. That’s why I’ve started trying to learn more about the Federal Reserve and the global financial system. I want to know how governments will respond and what the consequences will be.

I also agree that some areas are much more overpriced than others and that it makes sense to stay in a stable job (if you have one), sell your house and rent nearby. To me, it’s clear that housing will crash and that we’ll enter a pretty serious recession. What’s not clear is what will happen to the value of the dollar, inflation, etc. I think the entire financial system is going to be shaken but I’m not sure yet how to best position myself except to keep my stable job and put my money in short-term CD’s and (possibly) commodities. I wonder if the recession could turn into a depression. I really can’t think of one part of the economy or one area of the country that will be safe from this downturn, except maybe healthcare and commodities – things we all need to live our lives.