It might not "collapse" in the next year but yes there will be carnage in the near term. People hear about how this is the biggest bubble, blah blah blah. 2008 has absolutely nothing on what is coming our way.
There has been literally zero change put into effect after the earlier bailouts. (At the time it was an astronomical amount of money to the tax base). Yes, there was a lot of "press" about change and there was a lot of hot air about fixing, legislating and preventing similar situations from occuring again. It all amounted to a nothing.
When this bubble bursts, it won't be like the "Recession" or even the "Great depression".
For some it will be the equivalent of a moment as when the Deutsche Mark all of a sudden was worth fuck all.
For others it's going to be like Custer's Last Stand. For those individuals, they aren't going to be the troops on Reno Hill. I try not to be an alarmist but the momentum in this market won't gently recede and give way to cool shit.
We're headed for one hell of a storm.
In regards to 2008 at lot of that had to do with subprime lending though no? There has been change in lending practices since then. The issue doesn't seem to be that they're over lending but the home's value is overly inflated.
The issue if you look at in a basic sense was that people were buying homes at inflated values. This was because homes appraised for those higher amounts. Banks loaned at those higher rates.
Sure, there was a big dance about legislation on lending practices.
Everything I described above is the same now as it was but on a much more inflated scale.
This situation is obviously a lot deeper than this basic explanation, however, nothing has changed from 2008 to now. All that happened was they threw a shit ton of money on a fire.
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