[quote=poorgradstudent]So there will never be another boom again?
I agree that California’s economy was pretty heavily leveraged on sectors that do well during the up part of economic cycles. Wait, what was that last word. Cycle… cycle.
Just as when times were good people felt the good times would last forever, there’s an emotional tendency for people to think economic downturns will last forever. The smart money buys when everyone else is scared to and sells when everyone else still thinks there is gas in the tank.
By 2011 people will have all but forgotten the recession, and 2012-2013 will be a new boom.[/quote]
Macro-cycle or micro-cycle? There is a huge difference.
Duration, duration, duration… It will be the duration of the downturn that will cause the most damage. Everyone is looking toward models that define micro-cycles, and they are ignoring the underlying causes of this recession, IMHO.
Only time will tell.
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BTW, the reason we’re not leaving California is because we were born here, and because my DH is very much tied to his job.
