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

To: John Vosilla who wrote (33223)	6/12/2005 12:30:30 PM
From: Elroy Jetson	Respond to of 306849

The resolution to the current credit bubble, focused on real estate, is easy to imagine. Home prices in Los Angeles, which have bubbled up the most, will decline in price by 50% or so as they did from late 1989 to 1996. People in the real estate industry here are amazed that the public can participate in a bubble -- only nine years after the previous bubble collapsed. The brother of a friend of mine saw his condo in Encino (Los Angeles) decline by 40% -- to $200k less than his mortgage amount. In 1991 he gave his condo back to the bank and filed bankruptcy. Today he lives in San Diego and claims that real estate never goes down in price. The degree of self-deception involved is breath-taking! .