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 : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (93607)	2/1/2009 8:22:09 AM
From: ajtj99	Read Replies (2) \| Respond to of 116555

Mish, I have long been of the opinion home prices will continue to drop until they hit the 1996 values plus forward inflation. If you look at the Case/Schiller chart you'll see a parabolic bubble that started in 1996. As you know, bubbles re-trace in a bell curve, and Case/Schiller will likely fall back to close to the 100 level before this is over. That means we've likely still got another 30% to go to the downside yet on housing values. The best gauge for housing I found in 2006 was "Straight Out of Compton" houses in the LA area. Houses in the hood that were selling for $180,000 in 2002 blew up to $480,000 at the peak of the housing hysteria. I'm talking about houses with bars on their windows and drive-by's with bullets to boot.