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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: jjstingray who wrote (25357)	1/29/2002 11:02:39 PM
From: MSI	Read Replies (1) \| Respond to of 99280

I don't see that as cracks in the bubble, but a small healthy correction. I'd be more worried if banks kept lending in spite of increasing risk, like the 1980's, leading to foreclosures. The impact of cutting back credit lines for construction trade companies will have a slight negative effect on the economy as far as the somewhat fewer jobs being done, but will also have the effect of slowing down construction of new supply, reducing vacancies and somewhat keeping prices from collapsing as fast. In some areas there is oversupply that needs to be used up, even as construction is being completed on new projects that were started in 2000. Doesn't mean there won't be a crash somewhere, of course, especially in million-plus homes built on small lots with cheap materials with stupid architecture ... Do you expect a more dramatic real estate downturn?