Watching a train wreck unfold and pissed

[Reality]

You don’t need a recession to have a declining housing market. In the 90’s, the recession lasted from late ’91 to mid ’92, and yet housing in CA declined for another 4 years.

I didn’t mean a recession was needed. Some seem to think though that a housing correction will cause a recession. I’m all for the housing correction (not that it matters what I want, it’s coming anyway), and if a recession results so be it. Recessions happen every decade or so anyway.

[Reality]

You don’t need a recession to have a declining housing market. In the 90’s, the recession lasted from late ’91 to mid ’92, and yet housing in CA declined for another 4 years.

I didn’t mean a recession was needed. Some seem to think though that a housing correction will cause a recession. I’m all for the housing correction (not that it matters what I want, it’s coming anyway), and if a recession results so be it. Recessions happen every decade or so anyway.

[jeeman]

“Recessions happen every decade or so anyway.”

I agree with that. We are due for one in the next couple of years. I think the actual cycle is 6 years growth, 1-2 years recession.

[jeeman]

“Recessions happen every decade or so anyway.”

I agree with that. We are due for one in the next couple of years. I think the actual cycle is 6 years growth, 1-2 years recession.

[lonestar2000]

“We are due for one in the next couple of years.”

Funny, they say the same thing about the earth quake on the San Andreas fault. I do hope they’re wrong.

[lonestar2000]

“We are due for one in the next couple of years.”

Funny, they say the same thing about the earth quake on the San Andreas fault. I do hope they’re wrong.

[PerryChase]

The biggest scam is privatization of public pensions. The private sector gets to make huge profits managing the pensions but when things don’t work out, the taxpayers are asked for a bail out.

I think that public employees should get 401Ks like everyone else.

——–

Yeah, I agree we are due for a recession.

Savvy families should manage their lives as follows:
1) fall in love during the boom.
2) get married and buy a house during a recession.
3) save and move-up during the next recession.
4) but a vacation home during the next recession.
4) buy a retirement/rental house during the next necession and rent it out.
5) Sell the main residence during the next boom and retire. Move to the retirement house. Keep on enjoying the vacation home.
6) Sell the vacation house during the next boom, and fully retire.

[PerryChase]

The biggest scam is privatization of public pensions. The private sector gets to make huge profits managing the pensions but when things don’t work out, the taxpayers are asked for a bail out.

I think that public employees should get 401Ks like everyone else.

——–

Yeah, I agree we are due for a recession.

Savvy families should manage their lives as follows:
1) fall in love during the boom.
2) get married and buy a house during a recession.
3) save and move-up during the next recession.
4) but a vacation home during the next recession.
4) buy a retirement/rental house during the next necession and rent it out.
5) Sell the main residence during the next boom and retire. Move to the retirement house. Keep on enjoying the vacation home.
6) Sell the vacation house during the next boom, and fully retire.

[Ash Housewares]

The housing decline will almost certainly lead to a recession:
from http://www.newsmax.com/archives/articles/2005/6/24/115349.shtml
“The International Monetary Fund analyzed home prices in a number of countries from 1970 to 2001, and found 20 “busts” – when real prices fell by almost 30 percent. All but one of those busts led to a recession.”

“Japanese property prices have fallen for 14 years in a row, by 40 percent from their peak in 1991, and consumer spending has been weak, leading The Economist to conclude, “Americans who believe that house prices can only go up and pose no risk to their economy would be well advised to look overseas.””

[Ash Housewares]

The housing decline will almost certainly lead to a recession:
from http://www.newsmax.com/archives/articles/2005/6/24/115349.shtml
“The International Monetary Fund analyzed home prices in a number of countries from 1970 to 2001, and found 20 “busts” – when real prices fell by almost 30 percent. All but one of those busts led to a recession.”

“Japanese property prices have fallen for 14 years in a row, by 40 percent from their peak in 1991, and consumer spending has been weak, leading The Economist to conclude, “Americans who believe that house prices can only go up and pose no risk to their economy would be well advised to look overseas.””

[robson]

i found it interesting you compared it to an earthquake because a quake is nothing more than a release of building tension and gets worse the longer it builds

[robson]

i found it interesting you compared it to an earthquake because a quake is nothing more than a release of building tension and gets worse the longer it builds

[LA_Renter]

I once heard somebody say it’s a recession if you have a job, it’s a depression if you don’t. I had to look for a job in a mild recession once and trust me I do not wish that on anybody. I totally agree with Temeculaguy and the hurricane analogy. It’s not like I’m sitting at the beach thinking “man, I wish there was a big hurricane that would hit this place and rip it to shreds”. It’s just the fact that these things (hurricanes, earthquakes, recessions, etc) happen. There is a distinct difference between being a realist and a pessimist.

[LA_Renter]

I once heard somebody say it’s a recession if you have a job, it’s a depression if you don’t. I had to look for a job in a mild recession once and trust me I do not wish that on anybody. I totally agree with Temeculaguy and the hurricane analogy. It’s not like I’m sitting at the beach thinking “man, I wish there was a big hurricane that would hit this place and rip it to shreds”. It’s just the fact that these things (hurricanes, earthquakes, recessions, etc) happen. There is a distinct difference between being a realist and a pessimist.

[JWM in SD]

Wow Perry, you just outlined my scheme for the wife and I!!! Is that your plan too??

[Author]

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