Who Wins and Who Loses When the Housing Bubble Pops?

This time around, the Fed may not be able to "save" the bubble from a complete round-trip deflation, which history suggests might decline by 50%.

Let's start by stipulating that my interest in housing bubbles is purely abstract. I'm not rooting for any set of participants or betting on housing going up or down. My approach is to simply look at the dynamics in play and consider what history offers up as potential trajectories. Rick Blaine summed up this perspective in the film Casablanca: "I under…