[quote=scaredycat]i know the cure for real estate addiction:
allowing market forces to bring some real pain and reveal some real risk to playing with heavily leveraged assets.
clearly there hasn’t been enough pain if it still seems like it might be a good idea to get leveraged now.
just my feeling…I talk to so many people who continue to feel so optimistic about real estate. there needs to be more fear at a real bottom, i think….[/quote]
Most definitely, scaredy. If this is “the worst recession since the Great Depression,” then bring on another and another. People are still spending as much as they ever did, and they are still getting deeper in debt. Everyone thinks housing is the path to riches, and that the 2007-2008 dip was just a brief blip on the radar. Flippers and specuvestors are out in full force, and people are bidding things up because they fear they will be “priced out…FOREVER!”
This most definitely doesn’t feel like a bottom to me.
