I almost feel there's a chance if this mini crisis doesn't bring the big downturn this month then perhaps there's a chance the downturn won't be so bad. Yeah many people are in rough shape now and the govt doesn't solve problems, only make them worse. I think they should pause rate increases for at least the next 6 months. 15% is a conservative estimate, with the problems right now heck it's likely to be 25%+ if the big downturn happens, but hopefully it doesn't. But if it does then plenty of cash to make a killing like 2008.
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Originally Posted by XutvJet
The market is quite pessimistic at the moment and most everyone has been calling for a recession for nearly the last 2 years. The market is latching on to this as the recession warning sign. I'm not sure I believe that a majority of banks are in a dire situation, but I'm sure some are now. This could likely spur a decent downturn in the near term, but I think the big downturn is still months out. I guess this could linger for a while, get a little better, and then bam, 15+% market downturn, lots of layoffs, housing turmoil, etc. Things are too expensive, wages and salaries too high, and money has been way too easy to make in market and for way too long. It's not sustainable and will correct. I feel really bad for those that are over-leveraged on their homes, cars, etc. and basically live paycheck to paycheck. Your toys that you really don't own may soon disappear because you can't afford them.
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