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Only a 50% Fall From Here
by James Quinn The Burning Platform
Home prices had historically tracked general inflation over time, even during the Great Depression when deflation took over. All this was true until the Wall Street/Federal Reserve purposefully created home price bubble of the early 2000’s. They created that bubble to take over for the previous bubble they created – the Dot.com bubble. Creating fiat/debt out of thin air and doling it out like candy has this effect.
Then reality regained control from 2006 through 2012, with a 33% crash in home prices, except The Fed and Wall Street decided to not let home prices revert to their mean. They colluded to have Wall Street hedge funds buy up all the foreclosed properties at pennies on the dollar.