Not sure how to respond. I’ll try your last paragraph:
“The bottom line is that while we may be using billions of OPM in Iraq and enslaving our kids, we don’t see the immediate effects. When the credit market and the housing market finally get marked back to rational levels we are going to see the effects first-hand and personally.”
Result of things going on in the credit market will mean just one thing: higher rates. That will hamper demand and cause prices to come down to compensate. This has been happening for the last 3 years and will continue to happen until supply and demand is met. Basically, this is market at work and not very surprising. Not as scary as you think…
