[quote=davelj][quote=FormerSanDiegan][quote=peterb]As sticky as rents can be, if this economy continues to contract at its present rate, there will be increased vacancies and downward pressure on rents. [/quote]

If the economy continues to contract at its present rate, our GDP will go to zero by 2025.

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Actually, if you keep compounding it you’ll find that it never reaches zero. Just a mathematical observation.

Which reminds me of a friend of mine who got divorced for the third time several years back. Each time, he lost half of his substantial net worth. “The upside,” he told me, “is that if I keep dividing by two, I still won’t get to zero.”[/quote]

I assumed a contraction of X dollars per year.

I just wanted to imply that projecting a continuation of current conditions at the same rate is the same error made by those who purchased real estate at the peak.