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

To: Tradelite who wrote (35652)	7/19/2005 12:39:21 PM
From: John Vosilla	Read Replies (1) \| Respond to of 306849

"If they were to cash in these holdings and not "manage" them, what in the heck are they going to do with the money? " Isn't that the problem in the long run if you are a RE mogul in a bubble market with tunnel vision? All the money of late has been made from RE appreciation. All the folks employed in the field have done very well and moved far ahead of folks with regular jobs and businesses. I don't see support for it in the cash flow of RE nor do I see it in the real economy. Of course the masses, even many wealthy folks, get fooled at inflection points if they are putting there money into overpriced condos with significant carrying costs that will sit empty much of the year. Greed, keeping up with the Jones's and pride of ownership psychology of today no doubt will reverse when reality sinks in and values drop. negative cash flow sinks in and the equity evaporates.