Replies to post #391833 on Zeev's Turnips Patch-No Politics (ZEEV)

[osprey]

These bursting bubbles can be painful. Hasn't happened to me but a good friend got hosed. He owned a house in Seattle, job market cratered. Moved to Colorado while renting the house in Seattle because he couldn't sell it at the time. Company in Colorado went BK, took a loss and moved to LA. Got laid off, took a 60K loss and moved to Texas where he got in at the low and at least broke even. As Greenspan says, you really don't know what a bubble looks like until you look back and see the downside. I guess we will know in a few years but my operating principle is to just use common sense. If it looks like a duck, it is a bubble.

[qwave]

I went upside down on my first house back in early 90's. Bought in Valencia (northern LA county) for 219k in 1991. Everyone said I got great deal since the same house around the corner went for 280k 2yrs earlier. Moved to San Diego in 1993 and sold house for 205k. After agent fees lost 28k. Can't complain though San Diego has been good to me.