I think it will lead to a new wave of problems, which will lead to a new wave of solutions, all built around taxpayer support and future inflation.
In a way, in doesn’t matter much anymore. For every 100 people who made bad decisions, or benefited from them, perhaps 5 will pay the full price. The tab for the mistakes of the other 95 is just added to the taxpayer/saver bill, to be paid in higher future taxes and/or higher future inflation. So now, with CRE hitting in full, it’s 150 people who made bad decisions, and 8 people who will pay. We already knew the pain was coming, so the only real question was who, of those responsible, was going to be made to pay. A few more, but very few, is the answer, I think.
Of the people I know, fewer than 3 or 4 out of hundreds are going to get hurt severely, if that. Even people who lost their jobs are still way ahead of the game based on the money they made in prior years. No one is worse off overall for having participated in the madness. And I am in the middle of the maelstrom.