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

To: John Vosilla who wrote (37440)	8/9/2005 10:42:06 PM
From: CalculatedRisk	Read Replies (3) \| Respond to of 306849

Dean is sort of the Cassandra of the housing bubble. Cassandra was right too, just nobody believed her!

To: John Vosilla who wrote (37440)	8/10/2005 3:43:42 PM
From: patron_anejo_por_favor	Read Replies (2) \| Respond to of 306849

>>If we do have a simultaneous across the board period of high foreclosures there will be a serious recession with 4.5M RE related jobs lost according to Dean Baker.<< Once again, I gotta reiterate that this is a key point that is frequently overlooked by analysts and economists. When you hear that the "US economy is now largely a service economy", what you're talking about is that it's a HOUSING related economy, to an extent much larger than at any other time in history. Therefore a moderate correction in real estate will create a self-reinforcing contraction in the economy. I sold some shares I've held (for over 20 years) in a couple very large diversified Fidelity equity funds today, primarily because of this (well, that and the fact that LT capital gain rates are not likely to go any lower than they are right now)....