Combine that with the 24 million homeowners who are expected to be upside down in the next few years and you have a toxic brew that will take another decade to dissipate.
But like Shiller said, we don’t want a collapse of the financial system, we want a slow deflation in house prices (that’s why we have the bailouts). We don’t want millions of FBs out on the street starting a revolution, do we?
