Jim Woolly,
Good posts. An illiquid market like real estate won't collapse all at once. If some folks are good at ignoring their losing trades (while talking up their 3 baggers over drinks), think how much better at denial people are sitting on a 4,000 square foot house in Bellevue, WA which they paid $800,000 for, sitting with a $600,000 mortgage. Similar houses go begging at $695,000, $635,000 . . .
Do you think they actively reconsider where their $200K of equity has gone? Wait till divorce, etc. forces their hand out of the market at $525,000. Oh well, it's only money.
Kb |
