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Technology Stocks : Discuss Year 2000 Issues -- Ignore unavailable to you. Want to Upgrade?

To: Cheeky Kid who wrote (8861)	10/3/1999 10:17:00 AM
From: C.K. Houston	Read Replies (2) \| Respond to of 9818

From that article you posted: Between 1973 and 1981, soaring energy prices pitched the United States headlong into its worst recession in four decades. Economic growth sputtered to a halt, unemployment mounted, and inflation soared ... I remember those days. You're too young. The deep recession hit Houston in the mid '80's. Bankruptcies were rampant. We had a large number of empty office buildings throughout the city, and high unemployment. Some new high-rises were totally empty for more than 5 years, with no tenants. Home prices fell about 50%. (37%-55% was the figure used in the local newspapers.) I was leasing a home back then [1986] which was originally built/sold for $345,000. Asking price during recession went from $285,000 to $235,000 with no buyers. Bank foreclosed on property and someone picked it up for $110,000 plus back taxes. Last fall I saw that the home was sold again for $259,000 ... $96,000 less than original sales price. Here we are now, about 15 years later, and many of these homes still have not reached pre-recession valuation - in spite of soaring real estate prices over past few years. They're getting closer, but are still not there. People who had cash back then did well. They picked up real estate for a song. Others, with mortgages for homes who's valuation decreased 50% were hurt big time. Many never fully recovered financially. Many lost their homes. Many businesses failed - including banks. Suicide rates increased, as did divorces. I had an ad in the paper back then for my marketing research company, for a position that paid $18,000. I got over 100 resumes ... including some from high level managers, who commanded high salaries pre-recession. They were desperate for any job they could find. It was really sad. That's when I really understood the depth of the problem. When I see the word "recession" ... it means more to me than it might to you. I lived thru one. <Do yourself a favor and get the book> Why? What's your point? Cheryl 89 Days until 2000