Very true of course but with the wealth pouring it they'll be able to prop things up for many more years I think. the real estate is so desirable out there that it might take ten years to recover from a crash.
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That was what they thought in Tokyo. They STILL Haven't recovered; and it is 30 years in!
You could not PAY me enough to live there ( I have had offers from Ca.), and I am not the only one....
>:(yeah yeah yeah, I know all about the Japanese problem but it sure ain't California, it's growing. Mostly illegal but it's growing! lol. No, the wealthy libs love it so they're moving there in droves. and the working class are moving here.
They share the same problem, their evenomy is supported by inflated real estate prices. Mortgage bundles support business loans, when one fails, the other dries up!
It has been an easy high income investment, so a lot of businesses have dumped a lot of their cash there. When it drops by 75%, which is about the inflated rate there; it will break a significant portion of the tech industries.
This is exactly what happened in Tokyo, including the mortgages used as a guarantee.
:'(sir smithlabs! once again you couldn't be more wrong wrong wrong, for the 1,575th time this year, you're breaking records but not the good kind! lol...
Well, CA will still be able to stay afloat longer than anyone thinks, I know you wish they would break off and wash away into the ocean but I think we'll be surprised.
They can't even afford to repair the dam they have at the failure point, because of stupid spending. Their power grid is on the brink, because they regulated the power companies so much, they could not afford the do repair or expansions. Look at Detroit, California is almost there. Give control to liberals, long term, and they spend until there is nothing left to build upon.
If you will move to Detroit, they will give you a house, free. Business is the core, but real estate is one of the biggest business supports!
I would love to be wrong, but Historically, liberal spending is fatal.
:'(yeah yeah yeah, we all know all this ...just look at Detroit. But CA is a different animal with so much wealth moving into the state. that gives them the ability to last longer than anyone expects. just watch. we'll be saying it's on the verge of collapse 5 years from now.
Well, the wealthiest city in the USA, Was Detroit....
Same same chicken.
:)>