Will there be a Stock Market Crash? — Market Mad House

I’m not afraid of the stock market; instead I’m afraid of the U.S. real estate market. However, I believe both the stock and real estate markets are unstable and dangerous.

The real estate market scares me because most Americans participate in it. In particular, Statista estimates 65.1% of Americans owned homes in 2019. Pundits are happy because that number has grown from a low of 63.7% in 2016.

Notably, America’s highest rate of home ownership was in 2003, just before the Great Economic Meltdown of 2007–2008. In 2003, U.S. home ownership hit a high of 69.3%. Unfortunately, the Mortgage Crisis exposed the fraud behind that figure.

Why I’m Afraid of Real Estate but not Stocks

Remember, the economic crash of 2007 began when they exposed many mortgages as fraudulent. The infamous NINJA (no income, no job, no assets) loans, were the most flagrant of mortgage industry abuses, but there were many other scams going down.

In 2007, it was real estate not the stock market that brought that down the economy and caused most of the suffering. Now real estate is bubbling again in America.