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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: marginmike who wrote (923)	10/21/2001 12:53:42 PM
From: John Chen	Read Replies (1) \| Respond to of 306849

Marginmike,re:"30-50%". It's not that it dropped 30-50%. The point is: 'was it worth that much, or just like the March/2000, stock market.' SunMicro is selling less than 15% of the peak. I know RealEstate is different and 'THIS TIME IS DIFFERENT'. The peak to bottom in RE is '10+years'. When the 'Earning growth' (price INCREASE, but NO INFLATION, talk about fuzzy math of the gov) is not there, there is no compelling reason to 'jack up the price'. The so called 'extra low interest' has been pretty much wiped out by the price-increase even if interest rate is zero. Pretty much they just shift the 'interest cost' into the 'principle cost'. It's a big problem for the 'future workers' who just start out and have to 'work/labor' to pay the burden of housing. NO INFLATION! (asset inflation doesn't count) NO WAGE INCREASE PRESSURE! (I don't know how they want the future worker to live) Like everything else, it just goes thru 'natural self destruction perid' and starts the cycle over. Well, the Fed/Gov is magically in the making of 'asset inflation' and 'no general public inflation'. Look at history, and tells me what it means down the road. Again, I know, 'THIS TIME IS DIFFERENT'. For the stock-market-bubble, the DIFFERENCE was attributed to 'PRODUCTIVITY gain' and blah...blah...blah. For the RealEstate market, I'm sure there are plenty of compelling reasons to be provided. Basically, it's the same old thing. (we want your MONEY and make sure you feel good to give it to me)