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

To: Jim McMannis who wrote (12440)	8/29/2003 6:30:53 PM
From: techanalyst1	Read Replies (1) \| Respond to of 306849

Exactly right......... but what would happen if property values suddenly fell? What would happen to the banks that would be stuck with all these loans they have out? My old neighbor refinanced his house in the 70's to pay his property taxes that had risen so much that he couldn't afford to pay them. Couldn't do that if you were upside down on the loans. Never thought prop. 13 was fair, but to take it back now and raise taxes to a rate that equates with what Buffet pays would surely put us under. If the state were allowed to run a deficit as the feds can, they wouldn't be facing this big of a problem...... they would have some time to reduce the deficit with an improving economy. TA