By now, the “it will never happen here” crowd has been proven wrong so often I’m amazed that anyone would give their utterances any credence whatsoever.
New paradigm? Didn’t happen
Soft landing? Didn’t happen
We’ve finally reached the bottom? Hasn’t even come close
It won’t overcorrect past the trend? The jury may still be out on that one but it shouldn’t be.
Prof. Grantham & Co. have documented all those bubble markets and to date 100% of them have reverted to the long term trendline. Most of them overcorrected; all the real estate bubbles overcorrected. Who here truly believes that the current cycle will result in pricing that doesn’t overcorrect below the long term trend?
