The 25+ year period from early 80’s through the 2008 was not a ‘normal’ economy although almost everybody seems to think that period was
normal and we are now in a depressed period.
The stark reality is that the 25 year bubble period was the true problem. The aberration was the REAL problem, although the world seems to think that the bursting of the bubble, which created the ‘Great Recession’ was a complete surprise and could have been avoided.
This is utter nonsense, spin and media hype.
With negative interest rates, it is possible that
house prices would continue to rise as most people who get a mortgage don’t really care what they pay for it, they only care about their monthly payment.
Those who pay cash will think twice but still may buy because that is the price if you want to own it.
The world is treading on very thin ice.
In many ways the exposure to debt & derivatives is much greater than what was faced in 2008.
Relying on past history is what most people do to plan their future,,, who knows; it might be different this time.
Black swans do exist.
Foreclosures were not the problem; they were the solution, yet the govt stepped in to keep the punch spiked.
The real time to step in was at least 5 years earlier and the ‘problem’ would have never been created, but the idiots that thought they were going to fix the problem didn’t really understand what the problem even was, and most people drank the punch and thought the punchbowl would never go dry.
Sad but true.
