Thank you Contrarian for that lesson in Geology :). My point really wasn’t based on whether Hawaii is truly at risk of a major disaster because I know that there are still several active volcanoes in highly populated areas. If that were to occur, we can all kiss our butts goodbye here in CA…
My point is that people don’t seem to get that if ANY asset class deviates from its average range of return, it will correct at some point. There were no fundamentals to support such a large run up in property prices. It was a propaganda driven rally coupled with easy access to credit. This will be examined by economists for years to come. The Fed is now in a very difficult situation trying to navigate us out of this mess. They’re going about it the wrong way in my opinion.
