Economics Roundtable: California Housing Crisis - Boom or Bubble?

[fuelban]

Drug prohibitions like anti prostitution, does not & never will work, like a snow ball, the further you roll it, the bigger the ball get’s, de criminalise these things, for you give nothing but cost to the public, and profit to the evil peoples, morality wise, if you don’t, then you wont, if you do, then you will anyway, {anyway} legal or not, prohibition is an excuse to allow someone else {governments} to take the wrap.

Thom in Scotland.

[fuelban]

Who do we all know from the USA drink prohibitions, not the voters who voted, but al Capone perhaps !!!, grow up, morals aside, get shot of prohibitions. Use common sense guys.

Thom in Scotland.

[JimLundberg]

Remember prices usually dip BELOW the trend line after there is a bubble.

[TYX91101]

Below the trendline? Are you crazy? That would qualify as a correction. Bubbles are usually followed by complete implosions. Look at a ten year chart of Nasdaq for a great example.

[JimLundberg]

That's true, it's actually worse than I'm portending huh! They are saying that houses that were $500K are now $300K in San Diego...

[Lav34me]

actually, he is wrong about regional differences. locally his ideas work, ie within california.

however, when comparing most of the southwest united states with say... new york city, things are a little different.

one does not see row after row of forclosures in new york, simply because if new york city goes on sale the world is buying.

real estate is hugely regional.

[TYX91101]

Real estate is hugely regional? The entire financial structure of the U.S. and the world is on the brink, and your expecting your home to maintain its value? Take two aspirin and call me tomorrow.

[gundamzeta209]

he was wrong on prices not coming down though.

[ppreston1]

If you want to understand why California real estate prices are in freefall, watch this video. Christopher Thornberg dissects the self-perpetutating bubble with statistics that are alarming.

Impressive that the lecture was given two years ago (Feb 2006)! He nailed it. He takes the clowns at the National Association of Realtors apart at the seams. Very entertaining but ultimately chilling in the implications for the housing market and the economy.