I disagree. The reason the subprime problems have started in those areas is because those are the weakest borrowers relative to the amounts they’ve borrowed. When subprime gets turned off the middle can move down in their expectations; the bottom has nowhere in the market to go but out.

There are just about as many NINJA deals floating around in the North County area as anywhere else. Right now, I’d say the only areas that are not as significantly effected by subprimes are the upper price ranges. However, all these market segments are ultimately connected, and what happens on the bottom will eventually make itself felt – albeit to a lesser degree – at the top.

Witness the pricing trends. When the market started to turn it was spotty and inconsistent. As the cycle has progressed that trend has spread to pretty much everywhere. Even the number of ultra-lux homes being sold has dropped off a cliff.

The effects of the subprime loans extended far beyond just the borrowers who used them on the way up; I see no reason why that would change on the way down.