3) Earthquake results into massive disruption of life and commerce in this area. Rebuilding is projected to take many years. Many people and employers just simply decide to pack up and move some other place. This severally affects economy of the area.
4) The budget deficit of the state skyrockets. Feds help out some, but tea party does not want to bail out crazy hippies and president Palin is severly limited in how much she can help. This causes crisis in the municipal bond market.
5) People have big mortgages to pay on damaged properties without big paying jobs and they start to default which starts the next leg of banking crisis.
Can this happen?[/quote]
If really when this happened then a real shortage of housing occur on a huge demand and perhaps temporarly it appears it might be a disaster but many government resources start provide some sort of relief (like FEMA etc)… eventually a lot demand for homes (either rebuilt or new homes occur). If your recall last San Diego fires – I thought housing is going to be worst but it back like a huge swing. Nothing these factors impact as long as jobs and CA attractive life exists.
