Good thread question kincella. Everybody bear has their own whacked out theory that they are passionate about. Steve Keen provides the most compelling argument about debt deflation and house prices but it has been shown that he underestimates the impact government stimulus can have on how things play out. Ultimately I believe Keen will be right but it might take far longer because government stimulus will be a plenty. Rapid initial drop of 10%-20% in say 1-2 years followed by prolonged weakness. Same as what happened in Japan in the 90s and what?s happening everywhere else atm, deleveraging our debt extravagance will become the order of the day for while.
