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

To: Mike Johnston who wrote (31752)	5/22/2005 7:54:22 PM
From: Crimson Ghost	Read Replies (1) \| Respond to of 306849

There will be a lot of political pressure for bailouts if the housing market goes into free fall. But the excesses are now so great that a big correction cannot be avoided short of the FED monetizing mortgage paper on a massive scale IMHO.

To: Mike Johnston who wrote (31752)	5/22/2005 7:58:05 PM
From: bentway	Respond to of 306849

Only the connected get bailed out, think lenders, not voters.

To: Mike Johnston who wrote (31752)	5/22/2005 10:20:11 PM
From: Les H	Read Replies (1) \| Respond to of 306849

25 to 30 percent drop expected in Shanghai and Beijing properties financeasia.com

To: Mike Johnston who wrote (31752)	5/22/2005 10:47:14 PM
From: John Chen	Respond to of 306849

Mike Johnston,re:"25% drop ... devastating consequence". Not so, according to "some expert". The late comer (well, they were born later and just starting out), will have a lot more money left to spend. Right now, those "money" are trapped in a house, unless 'house-ATM' option is employed. I think there is positive effect on other industry if RE price drop 25 to 50 %. That's a lot of liquidity to unleash into the economy.

To: Mike Johnston who wrote (31752)	5/23/2005 12:13:53 AM
From: Proud Deplorable	Respond to of 306849

Mike, it may possibly cause a dislocation but the pain must occur in order for things to normalize. Are you caught up in what passes for capitalism, huge profits for no real work, but is really a sign of your society collapsing morally and financially? The bottom line is that those who jump on board at market tops without doing their research and in hope of making a quick killing will deserve everything they get when it crashes. What you are not considering is that the vast majority of home sales in this BUBBLE are not primary residences but when you see projects sold out before the first shovel, it is almost ALWAYS speculators in a frothy market that is topping out, not if but when! It is not normal for the majority of people to make easy money under normal circumstances and so if we are not living in normal times then we are in a bubble.