You don’t sell your home.
Real estate that you bought as an investment and have a big mortgage on? Well yeah, get out if you can, but chances are it’s too late for most “flippers.”

But the place you live isn’t just and investment … it is also where you live. If you sell, you have to live somewhere else, and that costs.

The only people who would be selling their *homes* are nuts or are going to loose them anyway because they can no longer make the payments.

A home will always retain its primary value – a place to live – and generally will regain market value, though you might have to wait over 20 years.

The thing that will kill people if it gets bad is that you may own your home, have it all paid for… but if you get behind on your taxes the government will could seize it as happened in the 30’s. Hopefully the government is smarter this time around, but I doubt it.

I tend to share your, well if not optimism, a general lack of panic. From 1982 to 2000 the economy in Alberta sucked. A Bad economy is *normal* to my mind. And while the US is a basket case, the world economy overall is in better shape ( people take note, putting 80+% of our trade in the American basket is not smart – diversify! )

I have work. I have a shelter. I’ll live. The economic downturn means that the potential of actually doing better has evaporated, but the loss of upward mobility is not the end of the world.

Besides: With bird flu, 2012 asteroid strikes, global warming, ocean acidification etc etc it’s not like we live to retirement age anyway 😉