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To: Skeeter Bug who wrote (91243)	4/6/2001 7:25:45 PM
From: patron_anejo_por_favor	Read Replies (2) \| Respond to of 436258

<<many, many places will not see a r.e. bubble pop b/c they simply don't have a bubble r.e. market>> Skeets, I'm not sure this is true at all.... The vast majority of real estate deals require considerable leverage in the form of the mortgage. Currently the mortgage market is heavily dependant on FNM. If they become impaired and the mortgage market were to dry up, what does that due to the market price of a single family detached home 3 beds, 2baths in, say, Fargo, ND? Since the pool of available buyers would be reduced by a factor of 10 or so, the answer is "It plummets". Perhaps temporarily untill the mortgage lending system regains liquidity, but if you need the cash in a hurry (ie, within a year or 3) you're shagged. Discontinuous markets suck, be they in stocks, gold....or real estate. Regards Patron

To: Skeeter Bug who wrote (91243)	4/6/2001 7:33:02 PM
From: BigBull	Read Replies (2) \| Respond to of 436258

Agreed and agreed. Just suggesting that ANY overleveraged asset is subject to sharp price declines from time to time even if people get direct use out of it. I vividly remember what happened to Northeast residential real estate boom after the '87 stock market crash. NYC co-op prices declined almost immediately then the cancer spread to NJ, Conn, Pa, Mass, NH etc etc. We're talkin 30 - 40 percent declines in many cases. Didn't really start any meaningful recovery until after the RTC finaly cleared out the last of the weak hands. California is ripe for the same kind of action with the Naz demise.