Minutiae
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"Chuck Norris doesn't read books; he stares them down until he gets the information he wants out of them."
- ChuckNorrisFactsdotcom

Thursday, July 07, 2005
Aherm.

"California's median price in May for an existing single-family home of $522,590 marked an 86 percent increase from $281,330 in December 2001."

"The percentage of California households that can afford to buy a median-priced home has neared a record low, of 16 percent in May from 17 percent in April and 19 percent a year earlier, according to the report by the California Association of Realtors."

But this time it's different. Prices can't drop. Ever heard the saying, 'as California goes, so goes the nation'? How exactly can California's economy be healthy when fewer than 1 in 5 households can afford a median priced home? This is an astonishingly distorted market.

Imagine what would happen at an auction if people had no bid numbers. Well that's what's happened to real estate thanks to all those exotic lending practices over the last 5 years. People think nothing of going half a million dollars into debt on a 2 bedroom house and a $60,000 a year salary. Why? Because they don't expect to have to pay it off. They expect to turn it around for a six figure profit in just a few years. Where are those greater fools going to come from?

posted by Rachel 7/07/2005
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Deepest symapthies to the people of London. Direst threats to the perpetrators.

posted by Rachel 7/07/2005
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Groooooss. Giant balls of snot?

posted by Rachel 7/07/2005
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