I do not think so if the market is left alone, but when we are in a Presidential election year and the candidates are pandering to fix all of your problems, we are facing the law of unintended consequences.
I was all prepared to write a long post on this subject but I came across this one by Doug Quance and my work was done. So head over and read Doug’s perspective on how the government will do more harm then good during this correction.
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I don’t think the housing/lending problems will be the cause if we go into recession. They will be one of several components – cost of food, cost of energy, sensationalizing media causing investor/buyer anxiety.