What effect would a 10% stock market correction have on the U.S. economy at this time?
A Question Worth Asking
Started by
James Quillian
, Jul 08 2007 03:55 PM
6 replies to this topic
#1
James Quillian
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#2
U.F.O.
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Posted 08 July 2007 - 04:02 PM
Marginal. A further 25% decline in the housing market, however, would be a killer. Best.
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"Democracy is two wolves and a lamb voting on what to have for lunch. Liberty is a well-armed lamb contesting the vote!"
~Benjamin Franklin~
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#3
OEXCHAOS
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Mark S. Young
Posted 08 July 2007 - 04:39 PM
Marginal. A further 25% decline in the housing market, however, would be a killer. Best.
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Jim, in my opinion, the housing market is already there in most markets. It's just that the Sellers aren't hitting the bid in size, as yet. There's no bid where folks are asking, out here at least.
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#4
U.F.O.
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Posted 08 July 2007 - 04:54 PM
Mark, I can maybe agree that the housing market is in worst shape than the numbers allude to. I can also see the numbers a touch too negative. In "most" markets, there is no collapse here. The "some" markets that are bombing are CA, FL, OH etc. Most of middle America is within a normal negative range on defaults. Mortgage prepayments (defaults included) are actually lower than last months.
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"Democracy is two wolves and a lamb voting on what to have for lunch. Liberty is a well-armed lamb contesting the vote!"
~Benjamin Franklin~
~Benjamin Franklin~
#5
JAP
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Posted 08 July 2007 - 06:35 PM
In San Diego the inventory is increasing by 500-600 homes every week.
San Diego real estate inventory and asking prices
I'm hording my cash and waiting. Maybe I'll buy a home in 2012
San Diego real estate inventory and asking prices
I'm hording my cash and waiting. Maybe I'll buy a home in 2012
#6
redfoliage2
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Posted 08 July 2007 - 07:38 PM
I don't think the worsest is there. A real estate cycle is 5 to 7 years. The housing price just started dropping this year while the rate is still low. Wait to see the real worsest when the Fed resumes hiking of the rate in the next few years.Mark, I can maybe agree that the housing market is in worst shape than the numbers allude to. I can also see the numbers a touch too negative. In "most" markets, there is no collapse here. The "some" markets that are bombing are CA, FL, OH etc. Most of middle America is within a normal negative range on defaults. Mortgage prepayments (defaults included) are actually lower than last months.
U.F.O.
Edited by redfoliage2, 08 July 2007 - 07:39 PM.
#7
arbman
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Posted 08 July 2007 - 10:24 PM
The real question to answer is what happens when people realize that the get-rich-quick deals in real estate do not work anymore? They will try to get rich quick in stocks again, look at what's being bidded up the most Apple and Google 
