SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: patron_anejo_por_favor who wrote (31196)4/26/2005 5:55:01 AM
From: redfish   of 110194
 
Another difference is that in the stock bubble there was often a broker between the owner and the market ... having a third party involved can help overcome the owner's natural unwillingness to acknowledge having made a mistake and cut his losses.

When the real estate bubble unwinds I expect that many speculators will go down with the ship rather than cut losses, as there will be no third party to tell them "I really think you should take some money off the table here." They may even add exposure.

So the breakdown may come in the form of a wave of foreclosures rather than a wave of selling.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext