You act as if everone is fully prepared for a real estate bust, from agents, to mortgage brokers, to truckers, to plumbers, roofers, to HVAC installers
No one, especially in the momo bubbble markets is even beginning to factor in the risks. If anything they seem to spend everything and more on RE investments and toys.
Here's a blog post from a financial website by a stock trader who lives in SoCal and likes to windsurf in Baja:
Yet another trip to Baja, down the 805 freeway through San Diego.
Its been about 9 months.
Again, I'm astonished at the spectacular rise of luxury homes, luxury apartments, luxury condos everywhere.
The RE Bubble has gone global, with unprecedented residential construction going on in Tijuana beach area and Rosarito along the toll road.
Took me 4 hours to get to the border from my office. Twice as long as usual.
Traffic was out of control through San Diego. Road was completely jammed with luxury cars, SUV's, RV's, big trucks pulling giant fishing boats, ski boats, motorcycle trailers, whatever.
Its summer.
$60 crude has made no difference in travel plans.
Traffic is worse than ever.
Massive construction projects going on everywhere. Never seen so much concrete being poured, no wonder FRK is trading so well.
Unparalleled consumerism is going unchecked, even at the famous "secret spot" where I go windsurfing, 7 hours south of the border.
This place is out in the middle of nowhere. No motels, no resorts, just a dirt airstrip and crude camping facilities.
Yet some of my windsurfing buddies have taken things to a new level.
In addition to the few guys who fly in Piper Navaho airplanes, this new guy has purchased a Beechcraft King Air for the sole purpose of commuting to this spot on the weekends. He told me that the fuel cost for just a 500 mile round trip was over $1,100. I guess that's no problem. He says he can make the trip in less than an hour.
His profession? Mortgage broker.
Another guy has decided that he needs to top that.
So he shows up in a Robinson R44 helicopter. Unheard of to fly one of those into Baja so far south of the border. The thing costs about $450,000, and he had to spend another $50,000 to get an extended fuel tank.
Profession?? Real estate developer.
Anyway, you get the picture. Things are definitely in full blowoff mode in Southern California.
Never seen such prosperity. Ever. |
