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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: flint who wrote (25878)12/16/2004 11:14:00 PM
From: Proud DeplorableRead Replies (1) of 306849
 
The never has been in the history of the world a "housing bubble", rather it has always been a "land bubble". Hedging your land by shorting housing is simply insane

Really? Everyone here knows I'm not a re expert but my question is, what happens to builders who buy huge tracts of spec land and start building when the price of homes starts coming down? Do they just sit on this land and wait till the next cycle which will be many many years down the road? Do they build on it anyway thereby sinking more money into a declining market? Do they walk away from it?

Excuse me but if I stock up on something that I can't sell for a profit then I must have a loss as time goes by, maybe a cash crunch. Shorting builders seems like a perfect strategy right now to this novice. Oh, you laugh that I say I'm a novice. Guess what? No one in the real world cares to do the depth of investigations and research into the subject that you do. The public moves the markets and the publics perception is what is important, not the actual facts should they run contrary. When the CRASH hits in earnest you will see how foolish your protestations are.

Watch Sydney, its the future.

Retreat Australia Fair.
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