An economics presentation at Humboldt State University. Special guest lecturer Dr. Christopher Thornberg of Beacon Economics discusses the current housing bubble and its effects on California.
DEMETRIUS
Comments
LOL it’s different in Saskatoon? Now I’ve heard it ALL! Watch the US market collapse…it’s your future.
theres a pretty good Real Estate investing reading list at startinginvestor dott com.
theres no short cut to succes in RE investing
It is not the value of the house that went up it is the value of the land. Houses do not appreciate but land value does. The economic profession would have us believe that the economics of land is no different than the economics of man made stuff. They say land is capital. The economics of land is completely different than the economics of capital. For example how does something not man made get its market value. Because land is left out of the discussion full understanding cannot be had.
Great talk.
Im from Saskatoon, SK, Canada and weve had 57% appreciation last year and forecasted to be 26% more this year. And everybody cant stop boasting about how much their home is worth, and people spending like crazy.
People do see the storm clouds but they say its different here. People buying because they think they’ll be priced out forever.
I have a feeling we are where you were in 2004-05. The ride down is not near as fun as the ride up. No subprime might ease the pain.
I believe the housing slump is far from over. The employment scene in the North Bay area is not cool at all. Thank God I live with my mom. I would have to move out of California if I were forced to find an apartment due to crazy prices (still) and the shortage of apartment housing. I hope real estate prices bounce back soon for some sign of positive growth. I’m a fresh college IT graduate was has been unemployed since January 2008 and I really need a job… Now it’s find full time work or bust.
The Doc says real estate crashes take about 2-3 years to drop to real levels, but it may take longer than that.
Great speaker! Thanks for posting. I only wish the mainstream media interviewed economists like instead of the bull-heads who claimed that real estate would continue to climb at 10% a year.
This is exactly what I have been predicting! How can a 3 bed 2 bath home in So. Cal that was worth $250,000 in 1996 be worth $900,000 in 2006?? It just doesnt add up! There has to be a major correction when a family of young professionals making well over $100,000 a year can’t afford to buy a home within 40 miles of thier job due to inflated home prices!!
Thank very much you for posting this teaching.
I felt like being in the classroom of a very gifted teacher. Compliments.
A great application of economic science on an actual situation like the present housing bubble and the build up. The lecture includes some humble (and highly appreciated, by me that is) remarks about the limitations of the economic science (of what this science is capable of and what it cannot do).
I loved attending this class.
Spell….. SARCASM ……
My Comment was to say that everyone will feel the results of this
rise of the Mc Mansion on an average wage.
Sitting on a house or flicking homes may make heaps of paper wealth
but in the end all products must be payed for with WORK…
That thing where you actually create something at the end of the day..
Like the chinese do…
Im in OZ and we are riding a Chinese minerals wave with USA creating
the swell……… Yi haaaaa… I can see the beach from here……..
And the end game is to get everyone on the planet chipped with an RFID chip
Excellent speaker, great video! I just wish I had an inspiring teacher like this when I was in college (even though he was a guest speaker).
Uh, WRONG, it’ll take a while, but this thing’s eventually gonna have an ENORMOUS impact on the entire world economy, and no place more than Cali. you realize the number of jobs in the RE industry quadrupled in the last decade-most of those people will lose their lifeline. The borrowed money which financed America’s lifestyle the last 6 years–GONE. 08’s gonna be a terrible year economically b/c of this.
I think he was just being nice at the end. He’s knows it’s much worse than he’s saying.
2.2 million empty homes on the market are stock market homes. They are “day traded”. This is one fun mess. Got cash, popcorn, and 20% down?
Thank God it will only effect people who live in Houses…..
