US: video's from California showing the housing bust

House wouldnt sell at 50% off? Real Estate never goes down?

Illusion of Prosperity in the USA Today(Sacramento CA)

I’ll tag this one on here GB if that’s okay.

A local news report from Fort Myers South Florida where people who bought two years ago complain when the developer sells for 50% less than the original price.

One irate lady remarks *‘They (the developer) promised not to sell less than the market value’ * I hope someone explained to her that the developer kept their promise.

Like I said on another thread, its only going to take one EA to do this as a survival move and the we’ll see the same here in Ireland… the clock is ticking.

Possibly, but Ireland has more of a cartel culture than the US: we have very few building companies controling more of the industry here who have ‘an understanding’ (IMHO) to pull together - such as keeping prices high and offer applicances/offers instead, cut back on housing supply, no crazy ‘doom’ advertisments on TV etc.

We’ve already seen construction companies go to the wall (in Kilkenny ? - posted in the pin a while back) before ‘breaking ranks’.

You’ll see a lot of practically shell companies folding - the usual approach is for the directors to own the land and other assets personally, extract all profits at the end of each year, and use the company as a way of containing the risk in a downturn. It’s the ‘capitalization by creditors’ model of a company - an irish speciality.

Using such a company, there’s really no downside (for the directors) to folding it (of course the creditors are screwed totally) - the directors still own the land and can set up another company at a time of their choosing to try again.

Another good one from ITulip.

2007 US housing predictions from 2006

quality video! I hope they do a follow up in 2008 to revisit that interview :wink:

This Guy Peter Schiff is spot on :wink:

seen a few of his videos over the last year, has always impressed me. Calm in the face of screaming bulls and always backing up his arguments. Definitely a voice of reason.

To be honest, he appears to be excessively bearish on the US, but then again the people that were laughing at him last year have egg on their face now. At least I think its egg.

I don’t think he is excessive he is calling a spade a spade. Don’t forget that
a lot of people refinanced into these ARM’s and expected to be able to refinance these before the reset kicked in. This is not an option anymore.
The reset’s are only starting.
Watch this.

Oh I’m well aware of the problem of ARM resets etc. (have been reading ‘Calculated Risk’ for the past 2 years). It is just hard to comprehend the scale, i.e. is it a big problem or a catastrophically colossal problem. Lets just say that I hope he being excessively bearish!