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Strategies & Market Trends : The New Economy and its Winners -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (13121)	7/26/2002 2:41:04 PM
From: fedhead	Read Replies (1) \| Respond to of 57684

CTSH is a play on IT programming jobs going offshore. Anindo

To: Lizzie Tudor who wrote (13121)	7/26/2002 5:06:11 PM
From: techanalyst1	Respond to of 57684

We were particularly hit hard because we had lots of people employed in the mortgage industry and they just kept refinancing with ever higher loans and spent the money. When the speculators could no longer flip homes it just cascaded downward. Those in the mortgage industry really ate it cuz their biz went downhill, they lost income and then couldn't make their payments. We ended up buying another house in 1994 figuring that surely the bottom had to be in after 5 years of a slide, renting out our other house (you're right.... we had LOTS of rentals). We were dead wrong. We slid down for a few more years even with the rest of the country saying housing prices were rising. So.... here we were with TWO houses that we were down on. LOL!!! But NOW... I just don't see the speculation that we had in the 1980s. Your area of course has a unique situation with people so dependent on stocks for income and high prices already. All comes down to supply vs. demand. I don't see any of my neighbors selling so I'm assuming that people can easily make their payments. So... I really don't know that housing is a "bubble" on a national scale, but I do think that if it slows down then the economy is at risk because of the jobs that are connected to it. Plus.... houses are one of the most leveraged things you can buy. People who would never buy a stock let alone on margin are buying houses with next to nothing down. Better hope demand stays greater than supply and jobs remain ok.... otherwise the banks are gonna end up with lots of houses just like they did a decade ago. TA