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Gold/Mining/Energy : Gold and Silver Mining Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Little Joe who wrote (3371)	9/19/2002 11:49:34 AM
From: Real Man	Read Replies (1) \| Respond to of 4051

It's possible that the real estate will go up in dollar terms, but you better pray it does not, cause that's the worst case scenario of the dollar collapse...

To: Little Joe who wrote (3371)	9/19/2002 4:42:52 PM
From: IngotWeTrust	Read Replies (4) \| Respond to of 4051

Joe & Liz & Darlene...Tom's right and in a certain sense, so is Puplava. Real Estate Bubble is NOT referring to real estate home value appreciation, at least not primarily. Puplava and other economists are talking about the DEBT LEVERAGE OF HOMEOWNERS who have put their family residences at risk. A home can be in the same o'-same o' price bracket with modest increase in value or even a decrease due to location. However, if the home owner has refi'd several times, taking out more equity to do god knows what with the money, regardless of whether the appraisal is higher than when s/he first purchased in an environment where falling interest rates have encouraged such wanton tom-foolery combined with competing for available capital in an low interest rates climate which has choked off CORPORATE cap ex expenditures (which have NOT recovered, due in part to the credit crunch and the non-purchasing consumer)...THEN.... the mortgage holder WILL have no choice but to walk away from their mortgage, the market will turn to a buyers market, not a seller's market due to over-supply of available gently loved homes, and the ASSET CLASS bubble WILL burst. Darlene, you of all people usually see beyond the "price sticker" when you are analyzing situations. I'm surprised you don't "get it" when we are talking about the REAL ESTATE BUBBLE! IT ISN'T STRICTLY ABOUT PRICE OF NEW or USED homes...it's about the HOME OWNER'S DEBT and inability to service the mortgage debt. I just left a really nice neighborhood and my suburban ranch with corner lot, goodies, amenities, square footage, you name it. The home owner turnover in the 6 years I lived there before chosing to move to eastern Oregon to pursue jointly my Y2K prep and acquire my gold mining props WAS NOT DUE to home price appreciation in my very nice section of town. No, the turnover in that asset bubble class was due to job loss, foreclosures due to job loss, foreclosure due to divorce and lil single mom with all kiddies not being able to make the payments, lack of savings, plus all the OTHER things that contribute to a buyers' market in the Silicon Forest known as Portland OR, Failure of ability to service debt has NOTHING to do with location location location...but instead VOCATION VOCATION VOCATION .....plus more than a smidge of NO FISCAL DISCIPLINE for years prior to the foreclosures.. S E L A H