A loss in value is a loss in value whether it happens as a result of an outright price correction over the short haul, or by inflation over the long haul.
Think about what correction by inflation means – it means that everything else will double and triple, including salaries, but RE will remain flat. The people who purchased investoments will be watching the value (as opposed to price) of their investment decline.
Either way, a buyer will have more money to use for other things than housing if they rent during that time period. The problem with correction by inflation is that everyone pays more for everything; whereas a correction by price only penalizes the greedy idiots who made the bad decisions.
That’s why EVERYONE – including the idiots – should hope for price corrections more than for inflation.
