Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: yard_man who wrote (7567)	6/6/2004 10:43:23 AM
From: dpl	Read Replies (1) \| Respond to of 116555

>>Worse yet, when the market for real estate collapses, prices are less likely to collapse because when buyers fail to make offers houses simply don't sell. Sellers often resist cutting their prices in favor of just leaving the house on the market or taking it off the market. Traditionally the market adjustment to a collapse in real estate markets has come from the quantity side, not the price side—fewer houses are sold—while price reductions tend to come gradually. This doesn't mean that housing bubbles can't exist or that the bust is any less painful, only that it doesn't make as much noise.<< This is wrong.It is comparing apples to oranges. Comparing what happens in a secular bull when things correct to what happens when a bubble bursts.Prices will fall far faster than anyone can imagine. David