In my neck of the woods, anyone that invested in Real Estate ten years ago and sold it today would be making money, no matter how low the prices are. Anyone buying today, holding it for ten years and selling it, is going to make money, no matter how low the prices are by then. Anybody that's stupid enough to get a 15 or 30 year mortgage that could change interest rate every 3 years, will learn their lesson (do they really think that all those nerds sitting at the banks with Ivy League MBA's are idiots?). Real Estate is not for gamblers, hell... even speculators get cleaned now and then.

Lighten up Gary. It looks like you are beginning to develop a morbid satisfaction in proving to everybody that you are right about the doom and gloom. Real Estate is cyclical in nature but in the long run it always goes up. You haven't discovered anything new. Now.. How about selling us a few more versions of the Lightsphere before we line up at the soup kitchen?

I'm just planning on picking up a cherry 4000sq/ft palace when the market dips.

I think that the mortgage sellers weren't really truthful in disclosing the terms of the deals - I'm hearing personal accounts of people getting increased rate mortgages in the mail, and saying that their broker didn't do a good job in disclosing what was going to happen.

Here's the really scary part: Despite the huge price drop, the reported price changes actually understates the actual price changes. This is due to Builder Incentives. Have a look at some of the freebies builders have been using to get sales going: Sub zeros, pools, BMWs, even paying the property taxes for 2 years!

Look at this example: Candy bar companies don't like to raise prices, so they simply make the candy smaller, selling them for the same price; You may have noticed how many fewer Cashews go into a can of mixed nuts?

Builders do the opposite: They add "cashews" for the same price. Some feel the psychology of lowering prices scares off potential buyers -- or at least frightens them into sitting back and waiting. To avoid the appearance of decreasing prices (or to make them appear less severe), they offer more -- increasing what they are selling -- only without apparently charging for them.

This getting more for the same cost is price deflation -- just as paying the same amount for a smaller Almond Joy or less cashews is price inflation.

New Home Pricing today – more cashews – is even more deflationary than it appears!

People without money are taking it out of real estate and putting it into stocks. Money needs a place to go. The Dow is setting record highs for a reason. Parts of the economy like retail are going to tank, but naural resources and health care stocks will still be popular.

Intrest rates will be kept as low as possible to keep money in stocks and curb inflation. It is a tight rope because rates need to be kept high enough to keep forign investment up.

Our own Dick Chaney has most of his millions in forign securities. What a theif.

I say don't under estimate the power of the US economy. As long as oil stays low, things will be just fine.

The second word above is "WITH" money not without. oops.

i think Gary is right. if you learn to study the past and the economic indicators you will see the trends and cycles. 3 things always happen before a huge stock crash..(1).stocks are too expensive; almost all of them are at or near their 52 week high, (2). mutual fund managers have exhausted money to invest with, they should have at least a 7% cash position, most are at around 3 to 3 1/2% (3)stocks are way over valued to bonds...i have watched the home depot very closely over the past 5 years. they are currently firing all of their high paid employees. they started a new program a few years back which i think they hired like 10 people with great degrees from outside the company. they would be assistant store directors then move to store director then to area then to regional and on up the ladder to corporate. anyway, i believe they are all gone now...fired! fired for stupid reasons, but they all had great salaries and great stock options, not anymore. they are forced to sell the stocks when they are fired. anyway my point is i believe we will have a huge recession if not a complete depression because what we have is a faux economy, everyone is buying, and buying a lot but its all on credit!!! the middle class is being squeezed to non existance i bet in the next 5 years this country will be down, and down low, hurting badly, we are cycling back to carter and the 70's who will be our next great savior since regan is dead?