All things considered (ie data) it appears to be chaos.
The gov cannot afford to do either…sit and not intervene, or get involved. In one year since the first reset wave — southern CA alone price drop, to say the problem is enormous without a solution – is an understatement.
Babyboomers (the largest group) who have not saved for retirement, who want to use their home equity to live off…will not have disposable income to consume.
And the workforce will shrink –with the tax revenue. I heard last night on the *news* that you must have $250K for medical bills alone in retirement. There was an interview with someone who appeared 50ish talking about the daunting task of saving that much while sending 4 kids to college.
(oh…yeah –and in many foreign countries, college is free).
