This thread is a good reminder to me that there are both bears (I consider myself one) and lunatics on this board.
————————
Just remember that those who predicted a recession, derivative & credit market chaos, 40%+ price declines, etc. back in 2004 and prior were considered “lunatics.” Now that a few years have passed, everyone is on this train and the “lunatics” were exactly right.
It’s best to look at pre-2001 prices (before the “credit bubble”, not including the portion between 1982 and 2001). Remember that in 2001, people were in much better shape than they are today, debt-wise. Add to that, we will likely see severe problems in the financial world, and things do not look so good for real estate. Overall, there is a very powerful global deflationary force that the Fed has been trying to stave off since 1982, via credit inflation/expansion.
Unless we see more stable, quality jobs in the U.S., we cannot say for sure what will happen to asset prices in the U.S.
