[The-Shoveler]

“I don’t think that a 20% decline in prices this year is actually possible”

Heck, I think we have had at least 20% (more like 25%) drop in the prices of new homes in Temecula in the last few months.

So I guess it can happen,

[The-Shoveler]

Yea this is why I think it’s going to take a full blown recession before prices drop much in the better area’s.

At the same time I think the Fed-Gov will go to extreme measures to aviod a recession at this point for two main reasons,

1) By 2003 (near bottom of last stock market down turn), Private and public pensions funds were going bankrupt one after another (the Fed can’t afford to bail many more of these out).

2) The economy is seen as a large part of the war on terror.

Translation: The economy will look good on paper, but there will be a large part of the population that will not feel all that good about it.

[The-Shoveler]

Yea this is why I think it’s going to take a full blown recession before prices drop much in the better area’s.

At the same time I think the Fed-Gov will go to extreme measures to aviod a recession at this point for two main reasons,

1) By 2003 (near bottom of last stock market down turn), Private and public pensions funds were going bankrupt one after another (the Fed can’t afford to bail many more of these out).

2) The economy is seen as a large part of the war on terror.

Translation: The economy will look good on paper, but there will be a large part of the population that will not feel all that good about it.

[The-Shoveler]

Sort of Off topic,

We are seeing alot of the engineers (software types mostly) who don’t already own homes (this is in North L.A. area), leave for Bigger San Jose firms.

You Engineering types Down in SD seeing this as well.

I guess there is no advantage anymore to staying down here at the moment.

[The-Shoveler]

Sort of Off topic,

We are seeing alot of the engineers (software types mostly) who don’t already own homes (this is in North L.A. area), leave for Bigger San Jose firms.

You Engineering types Down in SD seeing this as well.

I guess there is no advantage anymore to staying down here at the moment.

[The-Shoveler]

Nor_LA-Temcu-SD-Guy

Man I love this quote,

“‘Much of prime is not really prime. The Alt-A base (has) been found to be really subprime. And much of the subprime has turned out to be flat-out fraud,’ Mason says.”

[The-Shoveler]

Nor_LA-Temcu-SD-Guy

Man I love this quote,

“‘Much of prime is not really prime. The Alt-A base (has) been found to be really subprime. And much of the subprime has turned out to be flat-out fraud,’ Mason says.”

[The-Shoveler]

Nor_LA-Temcu-SD-Guy

The thing that breeds the most instability is stability ,,, If that make any sense.

Anyway the point of this post is, in my mind the worst thing that can happen is that we don’t get a recession.. Why ???

You need recessions to purge the excesses, How many of your colleagues have their grown kids and grand kids living at home because they cannot afford rent even though they have reasonably good jobs !!!

[The-Shoveler]

Nor_LA-Temcu-SD-Guy

The thing that breeds the most instability is stability ,,, If that make any sense.

Anyway the point of this post is, in my mind the worst thing that can happen is that we don’t get a recession.. Why ???

You need recessions to purge the excesses, How many of your colleagues have their grown kids and grand kids living at home because they cannot afford rent even though they have reasonably good jobs !!!

[The-Shoveler]

Nor_LA-Temcu-SD-Guy

Yep, that’s a puzzle alright …

How many here can afford (or I should say want to buy) a 700K or 800K tract home ????

Not me for one.

[The-Shoveler]

Nor_LA-Temcu-SD-Guy

Yep, that’s a puzzle alright …

How many here can afford (or I should say want to buy) a 700K or 800K tract home ????

Not me for one.

[The-Shoveler]

Nor_LA-Temcu-SD-Guy

I think Country Wide CEO said yesterday, the defaults are increasing across all mortgages types (Prime, subprime ..
Super delux prime “just kidding on the last one”).

[The-Shoveler]

Nor_LA-Temcu-SD-Guy

I think Country Wide CEO said yesterday, the defaults are increasing across all mortgages types (Prime, subprime ..
Super delux prime “just kidding on the last one”).

[The-Shoveler]

capeman

I think the DX hit 72.xx this morning (new Low to the euro) but maybe I am reading it wrong (no finance expert here).

But it’s good to be Australian these days …

[The-Shoveler]

capeman

I think the DX hit 72.xx this morning (new Low to the euro) but maybe I am reading it wrong (no finance expert here).

But it’s good to be Australian these days …

[Author]

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