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

To: Les H who wrote (59700)	8/11/2006 3:07:11 AM
From: Elroy Jetson	Read Replies (1) \| Respond to of 306849

Yes it was very traumatic for people in the defense industry to lose their jobs, but in a state like California with such a diversified economy, the impact on housing demand was negligible. Its interesting to note that communities in California where most laid-off defense workers lived, suffered some of the most minimal declines. Other, more expensive areas, where they did not live suffered the largest declines in home values. The cutback in defense jobs, complete with multiplier effects, of slightly more than 1/2 of 1% per year didn't cause the collapse of the real estate bubble in California - but it was a popular story for smarting home owners and bankrupt speculators. Like all popular myths, this story will be repeated endlessly for generations just like stories of Zeus and Hera. Another real estate bubble is collapsing now without defense cutbacks, just as it has many times in the past. Bubbles collapse - that's what they do. .