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Strategies & Market Trends : Strictly: Drilling II
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To: Silver Super Bull who wrote (27328)2/3/2003 5:10:44 PM
From: Sharp_End_Of_Drill  Read Replies (1) of 36161
 
The interesting aspect of real estate as a hard asset occurs with low (or zero) downpayment loans that quickly end up underwater in a down market.

At that point people just turn the keys into the bank and walk away. Their hard assets go poof into nothingness. The bank's hard asset now represents a liability, and very likely a loss on their balance sheets when they sell at a steep discount.

So, hard turns back into soft pretty quickly for the bagholder, and the hard doesn't have the expected cushion against downside when the initial leverage was high.

Sharp
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