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

To: XBrit who wrote (26343)	3/25/2005 8:59:39 PM
From: orkrious	Respond to of 116555

ROFLMAO

To: XBrit who wrote (26343)	3/25/2005 9:13:51 PM
From: regli	Read Replies (1) \| Respond to of 116555

I expect the Bay Area to take a really bad drubbing, likely not as bad as Vegas but potentially significantly worse than L.A. Remember that the Bay Area even in the early to mid 90s never took the beating L.A. and San Diego took. Cost of living and housing in the Bay Area is among the highest in the U.S. Once the playing field in terms of wages between the East and the West starts to level in earnest, high priced areas will be hit the hardest. The Bay Area still has a dynamic economy but as I am sure you are aware, venture capital wants offshore options in just about any business plan. This is not your Dot Com economy anymore and the Peninsula from my perspective is especially severely overpriced.

To: XBrit who wrote (26343)	3/26/2005 4:03:20 PM
From: regli	Respond to of 116555

Just to reinforce what I said yesterday. "Cost of living and housing in the Bay Area is among the highest in the U.S. Once the playing field in terms of wages between the East and the West starts to level in earnest, high priced areas will be hit the hardest." Message 21169921 The following sentence says it all and it doesn't just apply to Detroit and the automakers. It applies just as much to high-tech, software and most other high end outsourceable services. "Finally, it’s just not possible for any firm in any country to stay in the game paying $60 an hour in wages and benefits to workers at every stage of the supply chain. Like it or not, the market now demands that parts be fabricated offshore, at "China rates." That still leaves opportunity for U.S. firms to combine those components into major subassemblies — but only if the UAW accepts lower wages and benefits at these first- and second-tier suppliers." Message 21170813 Lower real wages are in the offing and these will not sustain either the present lifestyle nor the present RE levels in ANY area, in the States or Europe.