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To: JDN who wrote (74683)	11/27/2007 6:49:55 PM
From: Dinesh	Respond to of 77400

JDN, I invite you to take a new look at the SF bay area housing. Perhaps a million houses in that region, and ALL went up during the boom. It didn't matter if the house belonged to a carpenter, a plumber, a computer guru, an accountant, a financier, or whoever. Even something like a total-tear-down shack in Rancho Cordoba (Cupertino) could be worth a million bucks. And they are still hanging close to those level, give or take a hundred thousand dollars. Some owners cashed in by selling. Some cashed in via equity takeouts. There were bids, multiple bids, forced re-bids on top of winning in multiple bids, and retractions because a house down the street went for a $100K above a revised asking price. I went to see a house in Menlo Park once, and the agent merrily informed us that the asking price had gone up (since brochure was printed) by $4m. Naturally, that took it out of my budget :-\| Similar stories in a zillion other neighborhoods all across America. Even Cleveland neighborhoods saw unusually large price appreciation. So, tell me again if you still believe that just a handful of people benefited from this real estate boom, and rest of the country got merely a bucketful of wampums. That those computer wizards in Silicon Valley who could navigate complex technical literature and deal with photon jumps could not parse their loan documents. Again, I am not saying there is no blame to dole out. Perhaps there is. And, we may even be fortunate enough and find out whom to blame. Regards

To: JDN who wrote (74683)	11/27/2007 10:11:58 PM
From: RetiredNow	Read Replies (2) \| Respond to of 77400

Well, it depends on how we handle the crisis. If our government bails out the stupid banks, then we'll all pay. Because at the end of the day, when our gov't overspends it's really you and I who foot the bill. But if we just let the markets work, it will punish the banks that made these loans through a tanking stock price. The less our gov't does to help them, the faster the economic and market adjustment will be. The more our gov't helps, the more the longer term damage will ultimately be. Let the chips fall where they may.