[Porsche-O-Phile]

It's like waking up the morning after a wild drunken orgy and then realizing everyone else at the party had AIDS.

I agree w/ tabs. Way too much speculative stupidity surrounding RE in the last few years. COMPLETELY unsustainable, yet everyone kept bending rules, common sense and time-tested wisdom to artificially sustain it since it just felt so damn good.

Whoops.

Hangover time.

It's going to be very interesting to see just how deep this rabbit hole goes. Virtually every bank and financial institution in the world ate of the poison fruit. Which ones will die and which will just get sick remains to be soon.

I'd put the chances for a large, 1929-scale event at 20-30% and the odds of a decade-or-so-long deep and prolonged recession at about 50%. This whole thing has been absolute stupidity since Day #1.

And housing prices are still 20X gross annual household incomes in some places. This is going to sting for a lot of people.