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.

Politics : The Trump Presidency -- Ignore unavailable to you. Want to Upgrade?

To: Steve Lokness who wrote (357726)	12/19/2025 2:58:52 PM
From: combjelly	Respond to of 358862

Likely these are heavily financed - which could create another downturn in housing if they have to bail. Hence my concern. With investors, there is a tendency to hold on and wait for an upturn. Until enough decide to cut losses and bail. Then everyone panics and does the same. Which is needed, but the potential for massive, short term pain is really, really high. We had that in Texas during The Bust under Reagan. The OPEC oil embargo fell apart and so did the Texas economy. Lots of people who previously were making good money in the oil industry suddenly weren't. Housing values dropped like a rock. Literally locking the doors and moving away. Many local banks collapsed due to delinquent mortgages. I know of people who bought houses on their credit cards, prices got so low. It took until after the turn of the century before housing prices got back to where they were before The Bust. Luckily, at that time equity loans had only been legal for a couple of years in Texas. So not many got caught up in that particular trap when the value of their houses dropped so much. As money advisors told people "you can't think of your house as an investment. It is a place to live" for those with recent mortgages.