Are you worried about real estate crashing causing a great depression?

Question

Leading economists are saying that the US Real Estate Market crash will lead to a recession like the 1930s.

http://www.realestatedecline.com lists many real estate articles including one about the Great Depression and details of areas where the values are dropping rapidly.

Answer 1

I am not worried but I think it may happen. Housing is too high here and much higher than the salaries in this area will support.
Those pesky yankees have moved in running the price of land up.
A house that should be built for 80,000 now cost well over 135,000 and jobs are not catching up with the realestate boom.
Also most of the housing is as I said due to retire people , moving in, doctors, lawyers, investors,(people who already have the money, not those coming into the housing need) and more jobs leaving every day.
Another thng that worries me is so many people have their retirement lives in the hand sof the 40-k companies which are owned by th ebig boys, and eventually thses guys are going to make the decision to sit on that money and move it into their own pockets.
That is what happened in 1933. A few people with most of the money removed theirs out of circulation, shut down plants, killed jobs and sold stock before the bust. It was deliberate and the criminals responsible for the depression were never brought to justice. The remained in charge ot become later CEO s and owners of the new America.

Answer 2

No great depression ala 1930s. Right now the softness of the housing market is driven by speculation, the rise in interest rate, and the significantly large use of innovative financing that allowed people with marginal fund to play. What we are seeing now are those marginal people being squeezed out.

My money is on the FRB not raising the interest rate in the near future. If it does nothing, the market will stabilize once the marginal investors and speculators had jumped out.

If you are on the housing market, here's something interesting. The Sr Bush coming to power ushered a recession. The next administration resulted in reversals. This is followed by Jr Bush coming to power again ushering a housing market instability. Perhaps those leading economists you cited should study these periods. Meantime, you can make your own interpretation. If you are in the housing market, caution is the word. Good luck.

Answer 3

Don't worry, Katie B. No leading economists are predicting a real estate market crash leading to a depression. The most reliable predictions, based on actual econometric research rather than speculation or paranoia, come from the economic forecasting firm Moodys. They are predicting a price decline nationwide of just 3.6%--hardly a crash, and certainly nothing that would lead to a depression. This, too, will pass.

Answer 4

Thats ridiculous! Why would the housing market cause a depression, like the Great Depression (not recession)? Who are these leading economists?

Answer 5

it is going to say no yet there'll by no potential be yet another great melancholy. actual materials industry will decline yet there'll be no crash. The financial gadget is to diverse for an yet another great melancholy.

Answer 6

No, I am hoping that government fiscal policies will have learnt enough by the last time! Here's hoping anyway!

Answer 7

No. But I might be at the auction buying up a cheap repossession or two.

Answer 8

Nope, we are rich and we won't go poor. The Brits could go poor though. God knows the snobs deserve it too.

Answer 9

No I rent my home and therfore do not have this concern.

Answer 10

No..
No one with any credibility is saying this..