WEBCAST: Rubino says housing bubble collapse could trigger major depression
October 3, 2006
• Too much debt, no place to hide
• Speculators ‘are rushing for the exits’
John Rubino says nation is headed into 'crazy times.'
John Rubino is convinced the current retreat in the nation’s housing market has all the signs of a bubble that’s bursting.
Mr. Rubino, a financial writer and advisor, says the bursting could be so severe, that it might trigger if not an actual depression, at least a recession in the United States.
“What we’ve ended up with is a classic bubble … with prices being far higher than the average family can afford, especially on the coasts,” he says in a CVBT interview. “It’s very possible a housing bust in 2007 turns into a general recession. You have the real danger of this snowballing into a serious, economy-wide, problem.”
((listen to the interview by clicking on the link below.))
But Mr. Rubino says the retrenchment can also provide opportunities for some.
“Crazy times, as we seem to be heading into, are also full of opportunities,” he says. “If you are in the market for a home, I would say wait a couple of years and you’ll able to get a great deal on your dream house.”
He says tomorrow’s home buyers might be able to benefit from a housing crash in 2007. He also suggests there are ways to invest in precious metals and certain stocks that might see appreciation under the right circumstances.
“Depending on your level of financial sophistication, there is something out there for you,” Mr. Rubino says.