Perspective — This housing bubble only occurred in several “hot” markets – California/Florida/Arizona/Nevada. It did not happen nationwide. Homes in other parts of the country appreciated in value at a year over year rate in a much more normal manner — those areas should be fine.
So, while California’s economy is what, 7th largest in the World, and the housing bubble will definitely criple those “hot” cities exposed to the bubble, in my humble opinion, it won’t be devasating on a nationwide scale. That is of course unless more predatory lenders/banks go belly up and the unemployment rate increases all over the country.
This theory is given to you from my last reading on my crystal ball and it’s been cloudy these days — So it’s probably a load of junk. 🙂
