/biz/ - Business & Finance

>>19804227
2008 wasn't a proper crash though. We never had to fix the underlying issues then, we just QE'd our way out of a depression and into a recession. The followup laws that kept banks from loaning money to any moron that asked for some? As soon as they came about, we got a bunch of 'mortgage lending institutions' that aren't subject to those laws. They now account for over half the home loans in the US.

Even during the recession, housing prices didn't deflate with the rest of the economy, and they've blown up in value ever since. This bubble is 20 years old. I think corona is just an excuse to soft-land the economy, rather than get the hard crash nose dive. In the 70s when Volcker killed of all the mal-investment, the debt to GPD ratio was orders of magnitude lower than it is now. If they go for a rip the band-aid approach, they'll do it knowing its going to be horrific.