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 Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: John Vosilla who wrote (51664)	1/27/2006 10:07:07 AM
From: GST	Read Replies (1) \| Respond to of 110194

What makes Michigan more real than Florida? We are less and less tied to a place where "things" are made (since so little is made anywhere around here). People are moving to where they can enjoy life (or so they assume). People are, literally, following the sun. John, point of fact, very few people make anything you can put your hands on anymore -- at least not in this country. The exception is housing, and of course we are all against that :)

To: John Vosilla who wrote (51664)	1/27/2006 11:17:07 AM
From: GraceZ	Read Replies (1) \| Respond to of 110194

You've just proven what I stated. The economic growth in Ohio and Michigan is negative to flat therefore housing also lags. The rust belt continues to rust. Economic growth in my own state is running well ahead of the rest of the country and the housing market is robust. California continues to be very strong in terms of economic growth, it's the 8th largest economy in the world. The tech wreak didn't even put a dent in that ranking because its economy is so diverse. Florida ia a retirement community. Housing is a product there. A bunch of people who live in areas with cold weather and older senior unfriendly housing have finally woken up to the fact that they will soon need a place to live out the rest of their lives, in the sun without stairs. When they are at the end of their working lives, they won't need a job to move there, just an income. It is also the Northernmost state in South and Central America as well as a free market Cuba. There is great economic growth in Florida but a lot of it is under-ground economy outside of the official stats. If you look at say the per capita income of various counties in a large diverse state such as PA, you'll see that the counties with the highest economic growth over many years, the strongest yearly percentage growth in incomes are those where housing has been strong recently. Previous to this latest cycle in RE housing was flat even in areas with strong growth in incomes but when it caught up it did so in a few short years. In counties where economic growth and incomes have continuously lagged, housing has remained flat. If your thesis that housing feeds the economy, instead of the other way around were correct, all these lagging areas would have to do is build houses to get their economies going! Maybe someone would be dumb enough to try that, who knows.