patrick.net

The first panacea for a mismanaged nation is inflation of the currency; the second is war. Both bring a temporary prosperity; both bring a permanent ruin. But both are the refuge of political and economic opportunists.
...Ernest Hemingway

Unless, of course, you win the war like we did in 1945.

In most countries you have the corrupt, and the landless. We're getting there.

The Answer lies in Globalization.
My guess is houses will drop 50%.
If we look at autoworker wages:
Detroit was $100 or $75 per hour
It moved to Tennessee and $55/hour
It moved to Mexico at $15/hour
It moved to China at $2/hour (China banned from auto sales in U.S.)
Jeep went bankrupt and emerged with new hires at $15/hour
Chinese auto workers got a raise to $3/hour

The best we can hope for is $15/hr or $30,000/yr which equates to a house or loan of $115,000 with 2 incomes $230,000. (fact check?)

Inflation is an unknown, Romney tariffs on China is an unknown, and if Japan's Yen is devalued to help break the Yuan/Dollar peg, that is unknown.

In a free global market the wages will equalize. Water seeks it own level.

Edit: in a free global market many foreigners can buy real estate in the beautiful Bay Area driving up prices.

robertoaribas says

Even in very poor parts of the world, a reasonable house with land costs FAR MORE than in most US cities.

Look for a drop in prices of 90% in all those poor parts of the world, across the board. Then we'll talk.

In our new system one guy can push a button and grab a trillion dollars worth of mortgages/deeds just because he can. No one can stop him and the carrying costs are just the property taxes. Say hello to the new rentier class. Formerly known as the nobility. I know he's doing it supposedly so my retirement check doesn't bounce. But how long will that fantasy last?

taxee says

In our new system one guy can push a button and grab a trillion dollars worth of mortgages/deeds just because he can.

See Sarbanes Oxley... Segregation of Duties, Internal Control over Financial transaction and IT access... but sometimes it happens.. rare, unauthorized, and will be caught/prosecuted.

robertoaribas says

. Even in very poor parts of the world, a reasonable house with land costs FAR MORE than in most US cities. visit Shanghai, Bangkok, Manila or Mexico city for comparison sake.

Smaller cities do attract industries and business, because they are more competitive.. as Arizona has from Silicon Valley.

Overall, Japan and German didnt skyrocket like many others... they already had their bubble in the 80s and 90s.

thomaswong.1986 says

taxee says

In our new system one guy can push a button and grab a trillion dollars worth of mortgages/deeds just because he can.

See Sarbanes Oxley... Segregation of Duties, Internal Control over Financial transaction and IT access... but sometimes it happens.. rare, unauthorized, and will be caught/prosecuted.

I don't see any indication that the fed will be prosecuted any time soon.

Things seem to be working quite well for them. The fed are fine, the hungry get food stamps. What could possibly go wrong?