To: Torie
To: GodGunsGuts
Nice charts. Now it is your turn to comment on their meaning, vis a vis our tete a tete, which frankly escapes me.
167 posted on
10/27/2006 11:01:42 PM PDT by
Torie
To: GodGunsGuts
Your graphs show a sever bubble burst in New York, San Fran. and LA in the early '90s. I remember people who had bought houses in each of these markets. The burst was caused by the interest rate changes.
It took people 5 years to get back the value in their houses. And they had to sit in the houses, go bankrupt or leave them empty until they could sell them at or near their buying price.
A bubble burst only moves down the price 10% or 20%. The factor is tied to the rise in interest rates because that is the real cost of ownership.
177 posted on
10/28/2006 10:08:52 AM PDT by
poinq
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