Anyway, I well remember the “forcast” of how bad it was going to get economically. Just never thought it would be this bad! Did anyone?
I do not think it is yet bad at all. If they (whoever is really in charge) manage to stabilize the economies this year and stop free-falling, then we would have avoided the real crisis.
But things will get worse even in the most optimistic scenario, before they get better.
In the second or the less optimistic scenario, Eastern European economies will crash, Germany will not be able to export much and PIGS countries will all be bankrupt (together with many others). The cost of houses will be the least concern.
I do not even want to think about the third and pessimistic scenario.
About forecasts: there are people who need to present official statements who cannot
say that things are bad as they realy are because then everybody will panic.