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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 (33276)	6/12/2005 7:55:10 PM
From: tsigprofit	Respond to of 306849

exactly...eom

To: Mike Johnston who wrote (33276)	6/13/2005 1:34:06 AM
From: mishedlo	Read Replies (1) \| Respond to of 306849

One way to look at the offshoring of jobs to Asia is in the context of the real estate bubble. Unless you expect a computer programmer to live with 6 roommates, or in a ghetto, he has to be able to afford the price of inflated real estate. A 200K California house from 5 years ago is now about 400K more expensive. That would translate into roughly $2400/month or $28,800 per year extra that an employee has to spend, to finance the same house. If you are an employer that is faced with having to pay an extra $28,800 per year, in order to support Greenspan's real estate bubble or move the position to India, the decision is a no brainer. What will happen is the cost of programming jobs in the US will decline right along with housing prices. Anything that can be outsourced will be, and housing prices will fall and bankruptcies rise. in a single word: deflation Mish