Sure one can be the cause of the other, but if you view them as separate events, it's becomes a much more dire situation.
Paul-doh has already mentioned that there are still people coming onto the Bend Economy Bulletin Board touting this as a 'great' time to buy.
Because prices have dropped.
Florida and California have been on this downward slide in housing prices for a couple of years now.
WELL BEFORE THE RECESSION.
You could make the case that the credit crisis arose because of the housing problems, which then precipitated the recession.
But if that's true, the places where housing has already been in bad shape now have a recession on top of what's already happened. That is -- all those bad, horrible, rotten things that have happened to Stockton have now had a big steaming load of recession dropped on top.
People have been trying to make the case that housing sales are on the rebound in California. Sure...if you count foreclosures. Which is sort of like telling me a store is doing really well because they have huge sales on the going out of business SALES.
But now the recession is here, acknowledged even by Bush, and you have to wonder if even those sales are going to go by the wayside.
Bend, on the other hand, won't even have the luxury that California and Florida had of a year or two of the national economy still being O.K. while our house prices drop. Our house prices are dropping right into the crater the recession has created.
5 days ago