People who are relating the previous recessions of the 70's, 80's and 90's to this potential monster are gravely mistaken.
As quite rightly pointed out by posters on this thread, interest rates were high due to rampant inflation. Now we have low inflation and in turn low interest rates.
Assets are NOT and I repeat NOT inflating in price! (with the exception of Gold and Cocoa Beans!).
There are two periods in history that can be compared to the current economic crisis, one is the Great Depression in the 1930's and the other is the Japanese lost decade of the 90's.
Deflation is currently infecting the world. Look at long dated bonds, that gives you an idea that there will not be inflation for a very long time. Once we see inflation start to creep into the economy then we will see Housing prices start to increase. But until then, my thoughts are property will correct back to its fair value which is around 4 times earnings.
If you want dates:
1. Its already started 2. It wont bottom out for a least 2 - 3 years.
