Great post. Re: housing inventory, go use google news to read articles from 2006 on the housing supply. They said the exact same thing to justify the prices.

Great post. Re: housing inventory, go use google news to read articles from 2006 on the housing supply. They said the exact same thing to justify the prices. Then 2008 hit and suddenly we had plenty of supply. I think there is also a tremendous amount of leverage in the system, albeit different from 2008. Now you have people who followed internet financial gurus and built up large portfolios of rental properties(>$100M in many cases). These folks may soon face issues servicing their debt as vacancies shoot up and their cash flows dry up. We're really in the very early stages of the correction. Remember, 2000 took 2 years to crash, 2008 took 18 months. We have no idea what the next year will bring.