http://www.economist.com/blogs/freeexchange/2010/01/recovery_comes_las_vegas
How in the world they can make the assumption that Las Vegas real estate has bottomed or turned a corner is beyond me. What's more head scratching is the more numb skull assumption that it is because California Real Estate has turned a corner that they see better days ahead for Sin City. These guys at the Economist obviously don't know anything about the potential trillions in ALT-A, ARM, Option ARM, and Neg AM exposure that California has. Who cares about San Francisco! That is the one city in California that is dominated by the Tech economy. Have you seen the NASDAQ's performance over the last 10 months?
How anybody can look at these figures from Case/Shiller this morning and take a positive stance on housing is beyond me. Has the media completely abandoned reality?
Where is the month over month increase in Las Vegas? Can someone tell me?
The only reason LA, San Diego and other markets have stopped going down because the banks are not foreclosing anymore. They cant handle the inventory or the truth for that matter. The shadow inventory almost looks like the tidal wave in the movie 2012.
Even when you take into account the slight gains from these markets, the index is still down month to month. What happens when the foreclosures start to mount?
One needs to only read Dr. Housing Bubble to actually get the real story about whats going on in California and the state of housing.
http://www.doctorhousingbubble.com/
This blogger has gotten it right from the beginning.
A recent article in Geology may shed some light on the situation in Nevada - water is fast becoming the new gold there, and informed buyers are staying away. In some communities, the water is turned off for hours at a time, so that other areas are given access.
ReplyDeleteThanks for the comments.
ReplyDeleteClean Water is a problem. I am just waiting for the time we have Water Derivatives and billions die of thirst because Wall Street make a bottle of water $15.