I just talked to a buddy who lives in New Jersey. My friend shares a 5 bedroom house with 5 other friends. One of the housemates is a Realtor. Last year the Realtor convinced the homeowners and another housemate to each “invest” in housing. Well, the two investment houses are now languishing on the market even with steep price reductions (they are chasing the market all the way down). One “investor” moved into her investment property to cut housing costs. She was just laid off and is looking for roommates to help cover her mortgage. The landlords are pissed with the Realtor and they are now considering kicking the Realtor out of their home. Apparently, the Realtor told them that making money on housing was a slam dunk. Each “investor” lost $100k already.

The way I see it, greed will ruin people financially but also destroy many friendships. The coming downturn will leave countless psychological scars.