Real Estate Bubbles and California's Economic Growth, Part 1

[TheWeekendExecs]

Hey, this is a really cool video after the fact. I am writing from Canada and it is interesting to see that some people were on the ball in Cali a couple years back. Making it look very obvious.

My friends and I are trying to discuss about current business events on our channel. Basically just some young people in their 20s having a casual conversation about some things going on right now. If anyone gets a chance, some feedback would be greatly appreciated.

[breannakeefauver]

nice video dude

[hbloch1]

Funny Video Must See!

YouTube:

Looking For Schmucks

[spectrum0590]

I like what you said that American start spending more than their earn which is the most common financial mistakes done by many people. Which is main root of financial problem that one can face.

[charliethepunk]

Denmark - Amsterdam, approx. 1000 kilometers of sea between these two places.

[BarryOcuda]

what a moron thornberg is... a house is not an asset, it's a liability. a house is constantly depreciating and he just admitted that in real terms it does not appreciate. it only appreciates in nominal terms, which is offset by the inflation. housing didn't stay in line with their true values due to the FED holding rates at ridiculously low levels and due to government mandates that home ownership was a right and any lender that kept out otherwise unqualified borrowers would be targeted.

[markbradleyvideos]

Great video! Looking forward to more videos from you. Thank you

[idgoback]

Up and Down the market goes....people make huge amounts and lose fortunes...you have to be careful in the california real estate market.

[DackIsBack]

POP!

[tickyul]

When greedy, materialistic Americans wake up on Jan 2, 2006 groggy,sick and bloated from an orgiastic spending binge they will have a lot to worry about. Major economic indicators are pointing toward a real messy time for the greedy ole USA. At the top of the list in the near term is a MAJOR correction in the housing market, this will have a ripple effect in many american sectors. So go ahead refinance your house so you can pull the equity out of it and buy your stoopid kids Bratz wigger dolls.

[vforvictoryv]

How right is this guy, it all makes perfect sense. This video was made at the end of 2006 (I think he says).

Average USA house price 2006 Quarter 4 $257.671.

Average USA house price 2009 Q1 $169,000.

Average Los Angleles price December 2006 $533,000

Average Los Angleles price February 2009 $ 303,500.

Las Vegas December 2006 $323,000

Las Vegas February 2009 $155,000.

Its a simlar story everywhere in the USA.

[fueledbymusic3]

This STUPID housing market thing reminds of how STUPID people are when they were ALL IN A HURRY to buy a home. I guess when loan co. decided to make it EASIER for almost ANYBODY to get in. "What's the hurry, man!!" This is when people (I heard) were actually IN LINES to buy!! WHAT"S UP MAN!!!!!! This is NOT Circuit City/Best Buy etc black Friday, now... GGGEEEE

[bajawind]

just two months ago a barber explained to me what a great investment canadian real estate is--now was. what everyone knows is always wrong--eventually.

[jandean61]

WOW ! This was posted in 2007 ! So. Ca R.E market hasn't gotten alot worse since !

[poxmovies]

nice video thanks

[dave777blaster]

now where is all the money they stole from everyone heck we can't even find out where the bailout went let alone to where all the trillions went.

[sctullie]

Montgomery Alabama is still a good investment for housing.

[barberaproperties]

Regardless of the ups and downs in the market, trying to put quality in to a property is important.

[OwnAHomeNow]

Many smart folks have called it the 'housing ATM'

[tulsarealestate]

So, what's that appreciation on a cardboard box in a Hooverville :) There are several inaccuracies here but none which devalue the general point of the video - illogical use of real estate solely as a speculative tool which always appreciates in value.

There are many areas outside of these depressed markets which are pretty stable because they did not participate in the bubble. Most Bubbleville residents' world tends to revolve around themselves.

[BubbFromGEI]

Good presentation. But one clarification: Piet Eichholtz, a professor of real-estate finance at Maastricht University in the Netherlands, studied 450 years of price history on the Herengracht, or Gentlemen's Canal. For my own forecast of prices in the UK, search "UK Property" on YouTube. You will see that Builder share prices are a good leading indicator.

[ourearthhome]

Pretty good stuff but like most economists and commentators he fails to mention that the housing bubble is really a land price bubble not a house bubble. Houses/improvements to land do not appreciate but land value does. This is due to the fact that the improvements can be increased indefinitely while the supply of land is relatively fixed. When "housing" prices fall it is speculative land prices that fall. Modern economists refuse to treat land separately from capital. Why is that?

[americanplanninginc]

I LOVE THIS VIDEO.ARTHUR ROBINSON

[warrenbraden]

I LOVE IT LOVE IT! Love to see Californias lose there homes! GO HOME get out of Nevada! You have done nothing but drive up living coast and destroy the landscape!

[Gary1111001]

I don't follow.

1. overpopulation's everywhere.

2. The bubble(and this superficial economy) is caused by Banks, wall street, and the Republican majority giving the green light to them....in exchange for some of the money they siphon from the American people.

3. People are losing their homes everywhere.

[magi244]

The bubble was created with Democrats and the Democratic Congress. Stop blaming the conservatives for your mistakes. Think about who is the majority in congress>? Democrats! Liberals can't say their wrong, sad!

[Gary1111001]

These aren't my mistakes. I'm for a 3rd party - Green Party.

2001-2007 was the first time in decades that one party(Republican) had both the majority in Congress and the presidency. We were able to find out once and for all what the Repubs could do without Dems in the way.

We found out.

I'm in the mortgage busness. I saw this comming in 2003. I was in CA and there was an obvious bubble. But no one even wanted to acknowlege it.

[glowfood]

Wrong, democrats took control of congress in 2006.

Thornberg is spot on.

[yogeedogee]

It turns out that we really did not need all those Mexican construction workers after all . . .

[FARTYPANTS30]

Excellent presentation. I'm a Californian resident who recently graduated college. I have been looking for a full time IT job since December 2006. This video is spot on! I believe no one takes this drop in the California real estate "bubble burst" than fresh college graduates. Entry level information technology job offers are almost non-existent here in Sonoma County. Real estate prices are still plummeting. Foreclosures are at new record highs. Mortgage interest rate are sky rocketing.

[jujutube123]

You and You drive up this economy. You don't buy it, it will be worthless. You want it bad, it will be priceless.

[heartzuzizmiifrin]

hummmm!

[despotidis]

it's a lecture from a university?

you saw the bubble in the subprime loans

[Foliemans]

tss he mentioned my real estate fin prof, shame he is a prof in maastricht the netherlands not maastricht denmark :) interesting stuff though

[Zopre]

screw california's economic growth, economic growth is what causes housing inflation and inflation is what causes homelessness and poverty

[theip2002]

This is exactly what I have been predicting! How can a 3 bed 2 bath home in So. Cal that was worth $250,000 in 1996 be worth $900,000 in 2006?? It just doesnt add up! There has to be a major correction with a family of young professionals making well over $100,000 a year can't afford to buy a home within 40 miles of thier job due to inflated home prices!!

[pisadinho]

interesting

[DoctorJohnJGibbons]

reali-whore shill.  So far = not anymore

[lennyfest]

anybody that decides to buy property now is a fool real estae in america will decline a min of 20% this year , even more in certain areas , real estate went up 20% a year for the last 5 years it could very easliy go down 20% a years for the next 5 years , dont listen to real estate agents telling you its a great time to buy, thats bull shi t ,, realtors are liars , dont trust them .. dont buy wait and save big money ,

[oceanfrontrealestate]

Del Mar California Baby! Ocean Front!

[DoctorJohnJGibbons]

down 20% next year.

[jetcoind]

Send this to anyone in the market to buy a house.

[kitty4justice]

hello there.. i have a real estate nightmare- these agents forged my name 71 times, fraud, threats and alot more.. greedy corporate business. love, kitty

[veggiedoc]

thanks a lot for posting something this interesting! The guy is a great speaker (even though Amsterdam is in Holland not Denmark). hope to see more brainy stuff up on the web.

[laplace977]

pretty interesting!

thanks to poster

[bocuster]

Thanks for posting, this was great.

[john67elco]

I hope this state college understands how great it was to has him speak!