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: Perspective who wrote (61759)	5/23/2006 2:09:44 PM
From: GST	Read Replies (1) \| Respond to of 110194

If everybody in the US bought a house at this year's prices I would agree. Check the number of homes sold -- deduct 25% for speculators and divide that into the number of households. It seems to me that it will take more like three years to wash away the fluff -- not ten.

To: Perspective who wrote (61759)	5/23/2006 3:49:58 PM
From: Jim McMannis	Read Replies (1) \| Respond to of 110194

RE:"The problem is that RE prices do tend to be "sticky". It isn't as simple as calling up the broker and saying "get me out". Lots of people will be stuck in homes that they CAN'T get out of due to negative equity. I think the cleansing will take something around ten years or so, just my WAG." I agree but think 20% off the top will happen rather quickly as the Speculators dissappear. Then comes the grind down. After all it took 10 years after the $500k tax break and 6 after Greenspan opened the flood gates and 5 years after the damn broke after 9/11. So when I hear things on CNN and CNBC...like "Is it a good time to buy". I just laugh. Like 20% off a house that's gone up 5 times in price is "such a deal".