socrattt you’re not completely off base, not in the least, there is no short-term end in sight for this correction that is engulfing the entire planet. The rules of cause in effect are ever proving their point, the decoupling myth is so quickly proving itself wrong it is not even funny.
We have a perfect storm that has been brewing ever since Nixon nixed (pun intended) the gold standard and all the levereging built up since then is unwinding.
Hell hath no fury…as they say, and payback is a b*tch. Revenge is a dish best served cold, and it is very cold in space. Ok, enough quotes…
The point is, not until all the inbalances come back into balance will this be done, and we’re barely in the 2nd inning in this ballgame.
Nobody is saying that you’ll be able to pick up a home for $100, although in some places of the country you can do just that right now, but they WILL correct to a level that is in line of earnings and prices people can afford in this market of a rapidly disappearing credit pool and tightening loan standards. As it was pointed out, those who have cash reserves will be able to pick up some real bargains, and those who used up their reserves to survive a job loss will be left renting until they have 20% to put down.
I’m not a doom and gloomer, but I AM a realist, and anyone can only guess how much the markets will correct this time around and how much it will overshoot on its way down. I have no need for a tinsel hat, but I do believe that we’re not out of the woods quite yet.
