2020?

[Pat Mustard]

That's the problem with corrections. They're indistinguishable from a landslide.
When Ireland collapsed and their property prices were heading downhill, on the way down, they had 3 major corrections where they started to upswing slightly.
Everyone (at the time) thought this might be the end of the downswing, and rightly so, but it ultimately was short lived and they finally hit rock bottom with an 80% decline in property prices. 12 years later, a large portion of home owners are still in negative equity even today.

It just worries me how bad it's going to get if the world does go into a full blown recession without any feds to help. Not like they can cut 4-6% in interest rates (which is/was needed to kickstart a failing economy). Unless of course we want to go into deep negative. Something which has never happened before.

It scare me to find out yesterday that billions of people's super (in the US) are going into 30 year zero bonds. Fuck me!

Actually with the new housing bubble, only those who took oit >100% mortgages are still in negative equity. The problem now is that people are struggling paying off mortgages with wages that are lower even in nominal terms than back before the crash (for example I will only hit the same wages in nominal terms as somebody in my grade and increment level had in 2008 by September, never mind real term equivalence). And with a rental market that is a sellers market there is often no option but to struggle on with paying the mortgage, apart from going homeless.

If another 2008 happens the world economy keels over, because the response to 2008 was not to ficx the problems, but paper over the cracks.