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

To: fatty who wrote (10897)	6/1/2003 11:41:57 PM
From: J. P.	Read Replies (2) \| Respond to of 306849

<<I'm not sure why this is the way our economy rewards people. I'd think that economic reward is based on productivity>> This is my basic thesis on why I think this will prove to be a bubble. We have all these people with very modest professions and salaries who suddenly have 6 figure windfalls from their ranch house. You know how hard it is for the average person to save up 100K from their salary? It could actually take decades! But it seem normal that a person who is, say, a 40K/year elementary school teacher to make 100k plus after owning a very modest house for 2-4 years. Leverage is a wonderful thing when it works for you. But wait until people who are leveraged 10:1 or worse on a house find out how it works on the downside. They will find out how tough saving 50K to 100K in cash earnings really is or they will have to declare bankruptcy or stay underwater for a long time.... Oops, I forgot housing always goes up, they're not making any more land, there is a shortage of land, there are so many immigrants, etc, etc, etc, never mind.....