I am a real novice, but it seems to me that even though the bubble expanded mostly over 5 years,
it appears from history and from the condition of the financial markets, with the “revelation” of the risk in the MBS and CDOs that it will take longer that 5 years to deflate. It would seem that the wage/income to price disparity would cause flat or declining prices past 5 years, unless people start making more than $69K per household – but how is that going to happen? When most of the jobs pushing the bubble were financial services or construction related. If the economy slows –and credit becomes tighter and more expensive, this is bound to go beyond 5 years.
