Anyone that thinks house prices are logical at 20x the median income is legit nuts. The 30's will look like but a small crash.
The housing market never really crashed..
It will the only way it wont is if wages are all increased 4 FOLD.. The chances of that happening are about the same as you cracking SHA-256.
Can you not see the storm? It would be wise not to be caught in it. Being in debt when the storm hits...
Risk vs Reward, the risk in the housing market is out of this world.. The reward is decreasing as prices skyrocket..
My bet is when America pushes their interest rate to negative 1% shit completely falls apart. They will get away with -.1%, -.25%, then -.5%(this will last a few months tops) it will be moved to -1% and the mass exodus of savers will annihilate the entire system. Odds are you'll lose everthing in your bank account.
OR there is a chance expoential economics and finite resouces goes on forever............................ but math does disagree.
Things are worth what people are willing to pay for them! The greater fool theory seems to be in full flow, but that is often the case.
Central banks are doing a great job of keeping the sh!t heap economy afloat, the stock markets seem like a bigger joke to me than the housing market, but they are both at about Bitcoin November 2013 levels.
