Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : YEEHAW CANDIDATES -- Ignore unavailable to you. Want to Upgrade?

To: Sergio H who wrote (8850)	6/27/2005 12:55:04 PM
From: Jibacoa	Respond to of 23958

money moving out of real estate is good for stocks. That's probably right (although I may have to check that with Uncle Al to be sure.<g>) But the question is how the money that is still in real estate and may "evaporate" will affect the general economy, especially the people that are feeling prosperous or wealthy today after seeing their house value increasing. I have several relatives living in Key Biscayne and some that had bought a house for $20,000 when they came from Cuba in 1960 had offers for their houses for $500,000 last year and now are considering offers of $1,300,000 and remain undecided.Of course the value (at present <g>) is the land, since the offers are for getting rid of the house and building a new one. That is the same thing that happened in areas like Malibu in CA in the seventies before the price broke. I am not familiar with what happened in Tokyo, but I understand that it affected the general economy and the stock market. What effect a real estate BB will have on different people, and especially on the average guy <g> ? That's it what will have more effect on the stock market. I know that Sarra, who had a pharmacy business in Cuba committed suicide in 1929 when his wealth dropped from an estimated $60M to around $8M, however, many people that lost a few billions in the market (like Ted T, Lawrence E. and quite a few others )didn't apparently suffer too much of an impact.<g> Florida real estate market is Tulipmania all over again I agree, but there are still a lot of people reportedly making a lot of money these days.<g>