It definitely wouldn’t lead to a “failed state” situation.
Wealth tied up in real estate is almost entirely unproductive. Losing it would cause some downstream problems for certain things and specific real estate based holding companies but it’s definitely not the end of the economy or anything.
If my house was worth 50% less tomorrow morning, not much would change for me except I’d need to start adjusting my long term plans for retirement. I wouldn’t (just barely) even be underwater on my mortgage.
it will lead to Canada as a failed state. 80% of all the wealth of Canada is tied up in real estate.
It definitely wouldn’t lead to a “failed state” situation.
Wealth tied up in real estate is almost entirely unproductive. Losing it would cause some downstream problems for certain things and specific real estate based holding companies but it’s definitely not the end of the economy or anything.
If my house was worth 50% less tomorrow morning, not much would change for me except I’d need to start adjusting my long term plans for retirement. I wouldn’t (just barely) even be underwater on my mortgage.