Will there be another depression because of the real estate 'bubble'?
The key to financial power lies in your credit rating. If you plan to get a home loan, save money and get better credit starting now!
The current 'real estate' bubble is a sympton. If this 'bubble' pops it is not going to cause a depression. It will however, be a indicator of a coming recession. Depressions are caused by the 'confidence' people put in their nation's currency as paper currency is nothing more than "the paper of political promises."
The lower the confidence the more money it takes to buy whatever it is you want. This confidence would have to run extremely low in order for a depression to be created. Just having one market tank wouldn't do it and there are too many safeguards in our financial markets for it to happen here. Even if we do live in an 'intrasecond' and global market.
Will there be another depression because of the real estate 'bubble'?Not sure, but......
Keep in mind...........
Times and markets are changing!
In California with average homes selling well over $500,000, a 20% decline is $100,000! In any market 'timing is everything'! So, could you afford a loss of 25% of your investment all because of poor timing???
This last up cycle was 10 years in many parts of the country. The downcycle now started in CA, Wash DC, NYC, Vegas and other hot areas of the past are all soft and getting softer.
From 1990 to 1996, the average home in San Diego lost 20% of its' value! The cycle we are now enterng looks like it could well exceed that on the downside!
More Related Questions and Answers ...
The loan information post by website user , we not guarantee correctness.