“Make no mistake, what is coming is no ordinary downturn; it will change our live’s forever. Many people who lose their homes will simply slip from the middle class and will never return. Sadly, I fear most will not realize what is upon them until it is too late. My advice: get out while you can and get as liquid as you can. Now.”
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Who is this advice directed to? The thousands and thousands of San Diego families who love their homes, already have built a cushion of equity, have good jobs, kids are in school, are part of the community, etc etc? The throngs of young executives who love the San Diego lifestyle and have no intention on going anywhere? The masses of older couples who have significant assets? Is the advice for these people to simply pack up and move to Boise? Or sell their homes or condos and rent an apartment? Is this what you are advising them to do? Everybody sell their homes, right now? Surely this cannot be your advice.

My guess – and yes it is a guess – is that the vast majority of homeowners in San Diego will not take such action. My guess is that interest rates will not skyrocket but instead stabilize, property values will not plunge but instead stabilize, the San Diego economy will not collapse and there will not be a mass sell-off of real estate and mass exodus out of San Diego.

The days of the quick buck in the San Diego are clearly over, for now, but if history tells us one thing it is that they will return someday. Until then, I for one am content to enjoy this great, growing area, fabulous weather and lifestyle, and simply hold onto my real estate as a long-term investment. My guess – and yes it is a guess – is that I will be very happy I did so.