Next Housing Wave

from www.theanonymousamerican.com

We all remember 2008 and the sub prime melt down. It is still fresh in our minds, and it's something that we have all talked about and speculated on. Its also something most of us missed. Even when we feel we made the right call, few of our portfolio statements would support it.

Many times investing mistakes repeat almost as if investing lessons cant be learned. It generally takes years to repeat bubble size investment mistakes. The housing market had a crisis in the 1980s led by over zealous lenders making unsustainable bets on the future of house prices. This bubble repeated again in the early part of this decade. Stock bubbles seem to reoccurs like clock work as well. About every ten years or so a sector of the stock market seems to blow up to unsustainable levels and then come crashing back down. Sometimes the bubble is so big that it takes the entire market or even the entire worlds market up with it. The more markets that join in the bubble the more upside the bubble will have, but it also leads to a larger busting when the bubble eventually bursts.

The only things left to determine about our current burst bubble is, how large it was, and how bad will things be when the deflation is complete.

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