I understand the bail out as surgery to remove the cancerous loans, and free up inter bank lending. This is supposed to lubricate the way for future loans, but as it has been pointed out on this blog numerous times, the momentum for declining prices is gathering pace, and is unlikely to slow down until the fundamentals of pricing have been satisfied. Having said that, Arcadia in LA saw increases recently in its median price. This does seem odd, and out of character with neighboring areas. It is a bastion of Asian dwellers, many of whom seem oblivious to the credit crisis. I will qualify that by saying my in-laws are Chinese, and within their own sub-economy things (any manner) may be different. Either pent up demand, or cash looking for somewhere to go that’s more secure than banks, could be a plausible cause.
