[quote=The-Shoveler]I don’t think we will see another crash in the housing market unless there is another economic catastrophe (not caused by housing this time).

Which actually I think there is a fair chance of occurring, but the fed will do “EVERYTHING IN ITS POWER TO PREVENT” such a thing from occurring in the near future (Because it “the Gov” cannot afford another one right now).

Interesting times, the game is afoot (just look at Japan).[/quote]

I think there’s way too much faith in the fed. When has the fed ever been successful at stopping the decline once the bubble popped. The fed creates the bubble but they can’t seem to do anything useful once it blows up. Their solution is create another bubble as soon as possible.

This time the bubble isn’t in housing per say but when the bubble pops it will bring housing down with it. That’s why you’ll probably see strength in the housing market for a bit of time after the bubble pops. People will initially feel smart for hiding out in real estate. It will be 6-12 months down the road after the bubble that we’ll see a liquidation phase in housing and I don’t know how bad it will be. I suppose it could be somewhat muted depending on the availability of financing and how leveraged people are. The low end will probably suffer the most in that scenario.