“I agree, partypup. I am also surprised to see people buying in 2008, but I keep finding bank owned properties. I saw one a couple of days ago that was bought about 6 weeks ago. Huh? Some people go through life blithely unaware and wonder why they are victims. Others perhaps know too much and that also has its downside. I prefer to stay informed. I am not trying to time the bottom, but even the blind squirrel can see that it is still not here and may not be here for several years.”
Amen to that! One of the biggest reasons that I don’t want to buy now is I’m not entirely certain where I want to put down roots, and I suspect that the next purchase I make will be one of my last. If what I think is going to happen actually comes to pass, I don’t think there will be nearly as much mobility in real estate transactions and credit for many years. And people truly underestimate the social fallout from a serious stock/credit crash/bank run. I don’t think social unrest is out of the question at all, especially in L.A.
Had a very interesting experience in my office today following the quake. Our elevators were shut down, and an hour later we lost power in the entire building. People immediately started milling through the corridors, chatty, excited, but clearly disoriented because their *normal* routine had been abruptly disrupted. During the course of the blackout, I learned that only a handful of my colleagues have anything remotely resembling emergency supplies, either in their car or at home. Their earthquake preparedness in NIL. We are talking a day or two of food, max.
Now ask yourself: what would happen if our financial system suffered a sudden shock or seizure such that people were not able to find food, get electricity or carry on with their *normal* routine for an extended period of time? The possibilities are chilling. And I’m pretty sure that L.A. is the last place I’d want to be tied. Renting suits me now because I am mobile and nimble, and I can leave in a pinch or do whatever I have to if circumstances arise.
Sorry to be the party-pooper, but I’m just calling it as I see it. I hope to God I’m wrong. But I suspect we’ll know soon.
