Notice something about this Smart Money commentary – It is Rich’s whole thesis from 2-3 year back. Finally someone gets it, but they don’t credit Rich.
“Strong job growth, great weather and a smattering of palm trees: Who wouldn’t want to live in San Diego? But what makes a place desirable also tends to make it more expensive. Home values here rose by 150% between January 2000 and December 2005. At its peak, this city had the highest ratio (14 to 1) of median home prices vs. median incomes in the country. Homes here were worth about 14 times the amount of money owners made each year, says Wyss. The national average was 3.4 to 1 — even at the peak of the boom in 2006, he says.
“The expectations for this city — that it was employing rapidly and that everyone wants to move here — got way too high,” says Wyss. Home values are now 24% below the peak. ”
That was in 2005 but since then, the frequent wildfires, the man-eating white sharks, the stray bullets from Tijuana and the Padres loosing streak hace people moving out of the city….
That was in 2005 but since then, the frequent wildfires, the man-eating white sharks, the stray bullets from Tijuana and the Padres loosing streak hace people moving out of the city….
That was in 2005 but since then, the frequent wildfires, the man-eating white sharks, the stray bullets from Tijuana and the Padres loosing streak hace people moving out of the city….
That was in 2005 but since then, the frequent wildfires, the man-eating white sharks, the stray bullets from Tijuana and the Padres loosing streak hace people moving out of the city….
That was in 2005 but since then, the frequent wildfires, the man-eating white sharks, the stray bullets from Tijuana and the Padres loosing streak hace people moving out of the city….
If the over-pricing of SD was so obvious to Standard & Poor’s chief economist, David Wyss, why did his organziation give triple A rating to leverage bonds based on sub-prime mortgages from SD and similar places; a process which actually exacerbated the over-valuation by making the granting of mortgages even easier.
The country really needs to find the answer to this question.
If the over-pricing of SD was so obvious to Standard & Poor’s chief economist, David Wyss, why did his organziation give triple A rating to leverage bonds based on sub-prime mortgages from SD and similar places; a process which actually exacerbated the over-valuation by making the granting of mortgages even easier.
The country really needs to find the answer to this question.
If the over-pricing of SD was so obvious to Standard & Poor’s chief economist, David Wyss, why did his organziation give triple A rating to leverage bonds based on sub-prime mortgages from SD and similar places; a process which actually exacerbated the over-valuation by making the granting of mortgages even easier.
The country really needs to find the answer to this question.
If the over-pricing of SD was so obvious to Standard & Poor’s chief economist, David Wyss, why did his organziation give triple A rating to leverage bonds based on sub-prime mortgages from SD and similar places; a process which actually exacerbated the over-valuation by making the granting of mortgages even easier.
The country really needs to find the answer to this question.
.
