Commodities started falling already, properties are next (they are dropping already, at least in the US).

I am guessing there will be a sudden huge hike of interest rate by the Fed since people are still trying to buy the "dip" now lol because that's the only way to contain inflation (actual inflation number is way higher so it's nowhere near done).

Those people in this thread are oblivious to what's happening or what's going to happen lol.

Well there will be a lot of pain obviously. In fact I am more curious about how China will resolve this as their GDP is largely dependent on their real estate.

People here don't understand basic economics and it shows.

During the early stages of the covid pandemic, there was an abundance of liquidity (the printing went crazy) so it's natural that the housing prices went up.

Therefore, to claim that the pandemic was supposed to bring down the housing prices is a contradiction in itself.

Anyway, what happens during a recession is that liquidity will shrink. People will not be able to repay loans. There will be lots of bankruptcies. There will be a credit crunch. Banks will be less likely to lend due to fear of defaults.

So there will be no buyers. And to attract buyers, sellers will need to decrease their prices. In other words, sellers will be throwing prices to save their own asses.

It will be a slow and painful process. It's due to come anyway but people will still think that it "will not happen", until it happens.

This post has been edited by Cyberbullies: Jul 14 2022, 10:48 PM

Yeah there will be a lag. Mass retrenchment (at least in the US) is gradually happening already under the guise of "unproductive workers" or "refusal to come back to office" lol.

It's usually the lag that kills. People become complacent and feel like it won't happen over time. And then it catches you off guard and swings at you.

That's why it pays to panic first. The ones who panic first will stand to benefit from the ensuing chaos.