Housing bust outcomes could be really more disastrous than anyone thought before

Housing booms tend to be more dangerous than stock market bubbles, and are often followed by periods of prolonged economic weakness. A study by the IMF found that output losses after house-price busts in rich countries have, on average, been twice as large as those after stock market crashes. The economic damage this time could be worse than in the past because house prices are more likely to fall in nominal, not just real terms. The whole world economy is at risk.