Ardit33 is right. Generally not a good idea to welch on a bet in global financial markets. Argentina is still not back.
The interesting thing though is if Fannie and Freddy fail the rent on your apartment will probably go down, and houses will be worth less. Of course, you will practically need to pay for the house in cash in the worst case scenario. Think permissively inexpensive homes, that no one but the French and the Germans can afford, if that makes sense to you. It is the opposite of what we have had the past 10 years, prohibitively expensive homes that every one could afford. I'm speaking in terms of values and not dollars though.
> prohibitively expensive homes that every one could afford
erm. I _think_ you meant that the people were borrowing more than they could afford to buy overpriced homes. But it sounds like you were saying that everyone was fabulously wealthy and homes, though not cheap, were affordable.
Exactly right. I meant people were borrowing above their level. A credit crunch would make everyone live within his or her means. Or rather, make it more likely that they would. I think people would still find some way to get things they should not have anyway, but it might not be as systemic.
The interesting thing though is if Fannie and Freddy fail the rent on your apartment will probably go down, and houses will be worth less. Of course, you will practically need to pay for the house in cash in the worst case scenario. Think permissively inexpensive homes, that no one but the French and the Germans can afford, if that makes sense to you. It is the opposite of what we have had the past 10 years, prohibitively expensive homes that every one could afford. I'm speaking in terms of values and not dollars though.