I'm not sure realestate prices would collapse, but the ability to attain financing to acquire realestate might suffer. There is nothing I can see in the immediate future that will stop financing coming in for more realestate buying. Particularly for minorities. Something, somewhere, would end up absorbing any catastrope of Freddie Mac and/or Fannie May. Take a look at the telecom and energy indices. Telecom (particularly wireless) is making a raging comeback. Many projected the demise of that industry and lost out on some very powerful profits. Kmart. . .once on the verge of bankruptcy, now trading like a winner all over again. It's all very cyclical, by nature. Even in the very worst case scenerio (nuclear terrorist strikes). . .the market would eventually hit a bottom where investors would once again make a killing.
I see, and can appreciate your insights. But there is simply too much power behind these moguls to circumvent destruction (much like Carlyle) . . .and continue to profit from those who can't see the big picture. There is always going to be something "stinky" going on in politics, and business. It's the nature of the beast.
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