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Group Think?


               
2006 Nov 29, 3:01pm   25,877 views  203 comments

by SP   follow (0)  

In a previous thread, our friend FRIFY raised an excellent point:

There is a danger of group think on this blog. There are plenty of economic variables which could change and make buying a house a smart move even at inflated prices. The ongoing trashing of the dollar with the resultant inflation could be one such sea change. Don't become as blinded as the FBs to economic reality.

While I don't fully agree that this blog is that boneheaded :-) I think it would be very interesting to discuss the impact that these economic variables will have on the housing crash.

Despite the title, this is NOT a discussion about whether we have group-think. And it is decidedly not a question of whether there was a bubble - that is patently obvious even to the trolls.

Instead, I would like us to take stock of the current economic and political situation and pick out key indicators ("sea changes", as Frify put it) that are game-changing and should necessitate a change in our bearish sentiment.

Group Think cartoon

Have at it,
SP

#housing

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203   ak268   @   2006 Dec 3, 1:27am  

I picked up Al Gore's Inconvenient Truth at the video store just the other day. If and when the California real estate crash ever arrives here in any truly significant fashion, gaining California land at mid elevations would seem prudent. According to Al, if things continue to go unchecked the meltdown of the Greenland, Arctic and Antarctic ice sheets will bring us new coastlines.

Buying in at a severe California real estate crash at mid elevations, then waiting things out again for rising sea levels can make your well located land become the new beachfront. With much of what we have known of as California underwater, your now prime beachfront property is likely to see the soaring California real estate boom of the 2040's. Hang on. Take care of your health. Live a long life, then enjoy your profits. Booms, busts and turning tides tend to be cyclic. Ride them rightly and profit accordingly.

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