Yes, I have to believe now that the American public has had it’s last bastion of wealth creation virtually destroyed or in the process of being destroyed…we’re in for a very long and protracted recession. The worlds biggest build-up of debt ever is being defaulted on. So that’s now gone. US wages have been stalled since at least 1999 in adjusted terms if not nominal as well. And now they cant get loans or credit as well. I do believe that as the worlds biggest importer, this will effect all the world. And now that it’s clear many countries in the world also were in a real estate bubble that’s now bursting, that will be further downward pressure.
I have to believe that people on this web site have not been looking at the world and what’s really happening. All this talk of a bottom in RE! Things are getting worse everyone,not better.
If someone could please show me ONE thing that points towards economic recovery in the world, do it. I need it! This is a perfect storm. REO’s are 45% of the sales and growing. Real unemployment is probably about 9%. This is a deadly combination for RE prices. Who’s going to stay in a home their upside down on while worrying about their income?!Volunteer foreclosure is going to join forced forecosure. This happened in Houston during the oil bust decades ago. It can easily happen again.
And probably is happening if you look at the success of justwalkaway.com.
Everyone’s talking about inflation, but all I really see is huge asset deflation. Oil will probably keep increasing just due to supply/demand, but that may be the only thing that appreciates. The world is contracting after the biggest debt creation in history…by orders of magnitude. This equals huge contraction.
