[quote=FlyerInHi][quote=CA renter]I think things will continue to gradually slow, with some bounces along the way, until 2016/2017. At that point, I think that the current bubble has the potential to collapse…and take everything else with it.
[/quote]
can you please elaborate what “everything else with it” means?
GDP has grown since 2008. Where would a collapse as you predict it set us back to?
In general, a mild recession (2 quarters of negative growth) is nothing much to worry about.[/quote]
Everything else: housing prices, stock prices, bond prices,* commodities, wild currency fluctuations, etc. And jobs will be lost, too, IMO.
You don’t need to have NINJA mortgage loans to make a bubble. It’s the level of leverage and speculation that causes a bubble. How that speculation and leverage manifest themselves does not really matter.
I’ve probably forgotten to list some of the things that have stood out to me over the past few years, but that should at least give an idea of why I (and a few others) are concerned. And this is all the result of the Federal Reserve’s manipulations…and the government’s support of those manipulations.
*Bond prices could go either way, depending largely on the global position of the dollar and faith in fiat currencies.
