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.

Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Road Walker who wrote (233816)	5/20/2005 10:47:18 AM
From: combjelly	Read Replies (1) \| Respond to of 1574953

"How do you make money on a housing bubble burst? " If it is anything like what happened here during the Bust, you buy after everything craters. Outside of Austin, we never really had a real estate bubble that much of the country has experienced at one point or the other. But during the Boom(1), housing costs were approaching national norms. When the Bust(2) came and people were losing their jobs right and left, many people just locked the doors and walked away, leaving the loan companies with the house. So the banks were in the unenviable position of having a lot of foreclosed properties in a nonexistant market. They wound up auctioning houses for literally pennies on the dollar. I know of a person who bought around a dozen homes for $3000 to $4000 each. Busts in general cause prices to dip lower, often a lot lower, than they should. The trick is actually having available money when the bottom is hit. I would have bought then, but the bottom of the real estate market was during the Dominos year after my consulting business died, along with the local economy in the early 1990s. Raising a family of 4 on $5.25 an hour as a MIT(manager in training, don't ask) ain't easy. I tell you this three times. OTOH, I can make a large pepperoni in 43 seconds... (1) With the run up in oil prices that started during the oil crisis, Texas economy boomed. Especially in Houston. (2) When both oil and farm prices collapsed, Texas was in dire straits because that was just about the sum total of its economy. That has changed.