Unlike the jokers at Harvard and the NAR, here's someone who gets it. Thank god for bubble-busters like Shiller, Schiff, Thornberg, Roubini and Roach. I'll take the intellectual firepower and morals there any day over corrupt bubble-cheerleaders like Lereah, Yun, Bernanke and Retsinas.
“American real estate values have already lost around $1 trillion [£503 billion]. That could easily increase threefold over the next few years. This is a much bigger issue than sub-prime. We are talking trillions of dollars’ worth of losses.”
“Over the next five years, the futures contracts are pointing to losses of around 35 per cent in some areas, such as Florida, California and Las Vegas. There is a good chance that this housing recession will go on for years.”
“This is a classic bubble scenario. A few years ago house prices got very high, pushed up because of investor expectations. Americans have fuelled the myth that prices would never fall, that values could only go up. People believed the story. Now there is a very real chance of a big recession.”