An example of deleveraging

I would like to use my neighbor example to illustrate an example of deleveraging.

My neighbor used to own only a Mercedes. When his children started working, each of them owns a luxury car. I saw a BMW, Sports car, a Toyota Camry, a sports utility vehicle, a 7-seater 2-litre car etc. After the financial crisis in year 2008, many luxury cars disappeared in the blink of an eye and are replaced by a 2nd hand vehicle.
A year later, even the house was sold.

This is an example of deleveraging.

I suspect the past 6 years of excesses in cars, houses, will go through this process of deleveraging.

A vision

All of a sudden, I have a clear picture of what is coming in the next 2 years.
1) In the coming months, the crisis in USA and Europe will worsen and this will send a financial shockwave to the rest of the world. S$ will strengthen against US$ to 1 :1. This is the right time to change S$ to US$.
2) To arrest the outflow of funds from USA to asia, USA is forced to raise interest rate drastically. This stemmed the outflow of funds to asia. US$ to S$ rise 1: 1.6. time to change back to S$
3) The rise in interest rate in US and Asia, caused massive deleveraging. Companies and government downsized to cope with the reduction in demand. Jobs were restructured and lost. Many homes, cars, investments were sold as consumers could not afford to pay the installments. Time to buy stocks or properties.
4) In the blink of an eye, a few years passed and things got better. Stock and property market rebounded.