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To: abb

But...but....the BUBBLE! WHERE’S MY BUBBLE?.........


8 posted on 05/16/2008 6:23:09 AM PDT by Red Badger ( We don't have science, but we do have consensus.......)
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To: Red Badger; lexusppd
But...but....the BUBBLE! WHERE’S MY BUBBLE?.........

The Bubble is in lexusppd's neighborhood as described in his Post 6 where all those people paid far more for a house than buyers could afford without going bankrupt.

Those people now have mortgage obligations that exceed the market value of their houses and the supply of Greater Fools willing to buy their houses at Bubble prices has run out. They, in effect, bought Honda Accords for Ferrari prices.

In that other development, where the builder is selling brand new houses at sane prices that the buyer CAN afford without going bankrupt, there is no Bubble. That developer is building and selling Honda Accords for Honda Accord prices.

23 posted on 05/16/2008 9:19:40 AM PDT by Polybius
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