The people who bought in 2012 had it pretty easy and while they generally were the big winners they still could have ended up as losers if things changed for the worse.Regardless its really up in the air how the market will react to certain news and I think COVID showed that because despite a very uncertain future where most would think home buying would be on the decline, people are still buying houses because human behavior tends to react irrationally.  

"In response to this she became Irrate.

I try to have them verbalize their irrational offer request and understand that it won't be profitable at their price.

I'd explain it would be irrational from a business perspective to pay over what the competition offers, & they'll come up with compromises if they value your business. 

In my experience in the stock market last 20 years, we make irrational decisions often. 

I'm thinking of waiting a year for the crash, but I'm worried about the inventory drying up and IR rates so high that I would now only be able to afford at most a 2 bed condo as opposed to 3+ bed home. 

If history tells us anything it is that man is completely irrational and will often act contrary to self-interest.

This requires a crystal ball that no one has - first, to believe that your assumptions will come true, and there are plenty of people that would call hogwash on that - and second, to interpret the response of the irrational animal called man.

Please, explain to me how someone is harmed in this scenario or, you would have to admit, it is completely irrational to make it illegal.

Unfortunately, I am irrational at times, as the correct action would be to simply delete the statement.