Replies to post #421 on Real Estate Bubble (RUBBLE)

[Wachovia_Man]

I suspect the middle class will be hit very hard when the housing bubble breaks (or deflates).

Lentinman, I believe eveyone will suffer if and when the housing bubble pops.

The poor and middle class will suffer at the hands of the creditors because of easy financing. I'll post more about this later.

But I think, from what I have seen at my job, that the hardest hit will be the rich. There's a reason for this.

Consider the following. For example, consider Florida. Florida has many condos which are going for near millions and multi-millions of dollars. Most middle class people can't afford a multi million dollar condo, let alone another house for 750,000 or whatever the case.

Hear me out, because I work for rich people: They are the ones who are going to get hit the hardest when the bubble eventually pops or even cools down.

My reasoning is that the homes they are purchasing are being leveraged. Yep, they HAVE five houses. They don't OWN five houses.

It takes the rich to finance multi million dollar properties.