For the longest time the bulls have held to the notion that employment and spending were strong, therefore the housing market couldn’t collapse, just correct. This is a small story in a small town but one that will be played over and over in many places as consumption declines (so sayeth brother Roubini). The last life preserver the housing bulls will have will be interest rates.
As far as Temecula goes, Abbot is a huge employer, 100k people and 4500 employees, that’s gonna sting not only the 700 but the remaining employees will be nervous spenders.
