You have 6 months to liquidate your assets

[Thor Sveinbjoernsson]

I’ve been doing a lot of research lately and I wanted to share with you guys what I have found about the correlation between unemployment, delinquencies and housing prices. During the 2008 housing crisis the housing market bottomed about 2 years after the peak in delinquencies. Note that delinquencies are very much so correlated with unemployment rates (see graph on link below). Unemployment is already about twice the peak in 2008 so it is very likely that delinquencies will follow, which will lead to increased supply of housing.

See data here, gathered by stanford researches: https://web.stanford.edu/~pavelkr/jmp_slides.pdf

Conclusion: You have about 6 months to sell off your assets until the market will be flooded with fire sales and forclosures.

[Aaron K.]

@Thor Sveinbjoernsson as my statistics teacher said almost every day

correlation does not equal causation

The last recession was driven by the housing sector, and subprime mortgages.  This time around with all the forbearance being offered it seems unlikely things will take a nose dive even equal to that of 2008.