I think that you have to realize that persons that buy into a bubble are not really playing with a full deck.
I don’t think that you will see a panic, rather just a bunch of REO will appear on the market. These should drop the property values dramatically. From that point you will see a bunch of pissed off home owners that can’t move or change jobs because they can’t sell their house.
The big question that has to be asked: When this stuff gets liquidated, who has to eat it? Your retirement plan or mine?
