Homeowners line up in the rain before dawn today outside the Palm Beach County Convention Center in West Palm Beach in hopes of saving their homes. The Neighborhood Assistance Corporation of America is making its second whirlwind stop in West Palm Beach to try and save the homes of struggling borrowers. [from The Palm Beach Post 27 Aug 2010]
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Bubble Denial Persists In Vancouver
The urges that lead to bubbles appear to be an integral part of human nature. And it’s fairly easy to understand why people argue that the circumstances of a current bubble are somehow different from those past: They feel removed in space and time from those who went crazy over tulips or railroads or radio.
When the Vancouver bubble implodes, however, it is going to be very, very difficult for local real estate owners and speculators to suggest that they had no idea that such a bust was going to happen. We’ve had the experience of watching it in real time and in slo-mo, playing out to our south.
Despite this, we STILL expect people here to tell each other that “no one could have known” that such a bust could occur. They will do this to protect the fantasy of their own wisdom, in the face of all the evidence to the contrary. -vreaa
This is a most excellent blog. kudos. I might suggest looking up Robert Campbell of The Campbell Method – he, along with Bob Shiller were way ahead of the game on this collapse.
As for our Vancouver friends, I don’t think too many people remember the collapse in the early 80′s when values plummeted 65% in a matter of 18 months and took years to come back. We sold, and are renting. This is going to be a debacle and my advice is cash up, kill debt, and read as much as you can. Your host here has it figured out and is doing his best to warn others. Well done and commendable. It won’t make you popular are cocktail parties, though. LOL.
Yeah, the cocktail party invites dried up some time ago.
LOL I thought they were lining up for presales!
The line up that follows the above is for food!
Back in the 80′s our Kitsilano house was assessed by the City of Vancouver for tax purposes at $335,000 – one year later the assessment was $135,000. The mill rate changed so the taxes didn’t but the assessment certainly gives you an idea of how fast things can (and do) go south.