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

To: Tradelite who wrote (33217)	6/12/2005 11:52:05 AM
From: Elroy Jetson	Read Replies (3) \| Respond to of 306849

John Vosilla suggested that people in Los Angeles could all take their profits and move to less expensive areas of the nation. But they can't -- because there are no wealthy buyers from outer space to take their place. This shows how credit bubbles can fool people for a few years, before it all comes tumbling down. Yahoo stock can sell for 600 times earnings -- until people want to take their profits. Then you have a situation akin to a fire in a crowded theater with only one tiny door. .

To: Tradelite who wrote (33217)	6/12/2005 12:07:46 PM
From: kikogrey	Read Replies (3) \| Respond to of 306849

Well here's a potential problem. Just sitting enjoying a leisurely Sunday breakfast this morning when the ground starting shaking. A mild (5.6) earthquake. A significant earthquake could easily hasten the unraveling of So. California real estate. Wouldn't be fun holding a mortgage on an earthquake damaged home that you couldn't afford to repair--structural repairs don't come cheaply. I remember the nightmare insurance aftermath of the Northridge earthquake, I had my homeowners cancelled indirectly because insurers were bailing on California--I made two phone calls to Prudential inquiring about coverage and they counted as "claims with $0 payment" and Prudential cancelled my 20 year policy and it was impossible to replace.