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

To: Crimson Ghost who wrote (31745)	5/22/2005 7:35:58 PM
From: Mike Johnston	Read Replies (5) \| Respond to of 306849

The 25% drop that you are expecting, would have devastating consequences for the economy and millions of leveraged households. Do you think that Congress would step in and bail those homeowners out ? A few things come to mind, for example tax credits, 100% loss write offs, 0% interest loans, perhaps grants or maybe even a "homeownership insurance" program with direct payments to homeowners facing foreclosure. For example here in New Jersey, there is a direct subsidy from the State in the form of $600 property tax rebates for homeowners, it is sent out once a year (retirees get a check for $1200). The "bailout" mindset is pretty common in this country especially among politicians, some investors and monetary authorities.

To: Crimson Ghost who wrote (31745)	5/22/2005 11:50:55 PM
From: SouthFloridaGuy	Read Replies (3) \| Respond to of 306849

I expect nominal price drops of 25% in NY. The real drop will be higher though due to inflation. I expect 40% nominal price drops in parts of the West Coast which at this point is a joke. The Investors Intelligence totem pole will sort itself out starting this summer and millions in paper wealth will evaporate. This will make the 2000 market crash look like a joke. We can thank our local Congress for exacerbating the problem and effectively sending the debtors to debtors prison. Do I want them to rot, yes...but unfortunately this would have sorted itself out a lot better if people could just file for bankruptcy. The old laws were fine, IMHO.