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To: BigBull who wrote (91249)	4/6/2001 7:54:52 PM
From: XBrit	Read Replies (3) \| Respond to of 436258

<<I vividly remember what happened to Northeast residential real estate boom after the '87 stock market crash.>> Me too, I lived in White Plains at that time. Our house there lost about 30% in value between 87 and 90. See my message to Cobalt, I agree with you. I believe I am now watching exactly the same process here in San Jose 13 years later. Eerily similar... the house in White Plains had a couple years of 20-30%/yr appreciation in 86 or so, followed by a stock market crash then a RE crash. And I think that's exactly what we're seeing in San Jose right now.

To: BigBull who wrote (91249)	4/7/2001 8:32:42 AM
From: Ilaine	Read Replies (1) \| Respond to of 436258

My impression is that what hurt the housing market in the late 80's - early 90's was the unravelling of the S&L's, as well as a lot of overbuilding on spec. I was sharing space with a guy who specializes in commercial real estate. deals. Even though it was obvious that no one was renting all the office buildings that were being built out in the Dulles corridor, they kept building. I couldn't understand why, and he explained it to me. As long as they kept building, they kept getting the next payout from the bank, so that was keeping them from going under. And the bank went along with it because if they admitted that the loan was no good, then that would mess up their asset sheet. And they kept praying for a miracle that never happened. Eventually the miracle happened, high tech came to town, and they started building again. And now all the new buildings are empty again. That's the way it goes. realtytimes.com