The US consumer, with zero savings, will spend everything they earn and overextend themselves with borrowing to support house and car payments etc. They will do anything and everything to attain and preserve their bigger houses and consumer goods. They simply will not be denied anything.
The ONLY way I can foresee any r/e price reductions is if people are unable to service their debt and that will happen only if unemployment increases to > ~ 8% like the 90s.
As for a blowup like LTCM, the government will come to the rescue again (with our tax money!)
