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I'm 24 so you're preaching to the choir :) The thing is - the world is currently awash in liquidity. Some small-ish defaults are happening in the auto loan and

I'm 24 so you're preaching to the choir :) The thing is - the world is currently awash in liquidity. Some small-ish defaults are happening in the auto loan and student loan markets, but nothing on the scale of 2007-8 mortgage defaults. Unless there are just huge, shadow banking markets for derivatives on these debts that nobody has brought to light yet, and all the major banks are involved. I'm not seeing how my generation (aside from the professional/engineering class) being locked out of the housing market in large urban areas triggers a recession though.

taurath 9y ago
I'm not saying it would trigger it, just that it is a symptom of a system thats gone way out of bounds. I don't even think it will be a mortgage default crisis per say (though when the values go down everyone who's currently stretched to get into their place will be screwed for a while). People parking their money on real estate could all try to get out of a given market at once, making a run on housing values. Strange thing is, thats the only case in which I am personally able to buy a house, so there's a large part of me that wishes it would happen so there would be more units on the market and affordability.