“We’re sitting on the ultimate house of cards,” says real estate developer Mitch Wexler to Daniela Cambone. He details how a “$5.1 trillion school bond Ponzi scheme” using inflated home values is pushing the system to “terminal failure.” He warns of the outcome: “Can you imagine what will happen if a school district… shows up in mass to take over an entire subdivision of defaulted houses? Do you understand by definition that’s an act of war? That’s the problem. That’s where this ends up.”
https://www.youtube.com/watch?v=1H2OeZlkKuU
The 18-year housing cycle is coming to a close, which has big implications for the U.S. real estate market. The current environment in 2025 entering 2026 looks a lot like 2007-08 with depressed home sales, skyrocketing builder inventory, and now declining prices in some markets. The question is: will this housing cycle lead to a crash, or will home prices hold firm throughout the downturn?