I also agree that the worst is yet to come; however, I’ve been surprised at how quickly things have changed just recently. Quotes from the CEOs of Countrywide, DR Horton, Toll Brothers, etc. have surprised me. The fact that these guys are making references to “this is worst I’ve seen it in 30+ years”, should make people step back and think. Part of me thinks this may accelerate down more quickly than the last downturn. Do I know for sure? Nope, but we just witnessed probably the biggest world wide real estate bubble ever! This time it is different – however, I think the fallout will be quicker and more painful.
The Fed will try to do something to stop this, but I don’t know what rabbit they’ll pull out of there hat. They may be able to stall it, in which case I will be wrong, but they will just make the coming correction that much worse!
