Chief Economist Diane Swonk is one of the most quoted economists in the financial press. She is seen regularly on national and international television and her commentary can be read in top financial news publications throughout the world. With more than 20 years experience in financial services, Diane has proved to be an invaluable resource for policymakers and business leaders from Washington to Tokyo.Diane C. Swonk, New York Times, March 25, 2005:
"I just don't think we have what it takes to prick the bubble," said Diane C. Swonk, chief economist at Mesirow Financial in Chicago, who was an optimist during the 90's. "I don't think prices are going to fall, and I don't think they're even going to be flat."Lou Minatti, December 5, 2005, warning a guy in San Diego that he's about to make the biggest mistake of his life:
As SoCalMtgGuy said, what do you think accounts for a house in La Mesa doubling in value in just a few years? Do you think it's because everyone wants to live there and people are willing to pay premium prices and therefore $400k is a reasonable price for a *tiny* house in a questionable neighborhood? (As an aside, do you really want to live in an 800 square foot house with two kids? For decades?)That was almost 4 years ago. I see two familiar names (Rob Dawg and SoCalMtgGuy has vanished. Meanwhile, I wonder what happened to the guy pondering the house.
Let me give you a personal history lesson. The Texas RE market 20 years ago sounds a lot like SoCal. Lots of people were moving here in the 1980s (and still are). Some cities, including Austin, had a "buzz". At the time it was considered to be the "in" locale. Prices increased accordingly.
Then prices dropped and continued to do so for YEARS. In one quarter alone (1989) Austin RE prices dropped over 20%. That's not a typo. 20% in ONE QUARTER. In a place that lots of people want to live.
Please read this article. You are inside the bubble and cannot see what everyone else sees. We went through it before and know what it looks like, you don't.