BlueFire

Bill Gross: If Housing Prices Decline Further, So Does the Economy

Amen to TommyG. Real estate investors are not speculators. No one in their right mind buys property counting on it rising in value. An investor would never buy a property unless it were at a minumum 20% below market value and preferrably 30%. Why? Look around. Profit is made at the time of purchase. If the property rises in value that is a bonus. Let the blood letting continue as it must. Slow it down and you will only prolong it and force the innocent to pay for the guilty. What nonsense. The only people losing their homes are those who need to be losing their homes. Cold but true. And when enough of us feel the bottom, there will be a real estate buying frenzy. This is the great housing shuffle. At the end of the day, most will have a roof over their heads. For many it will be a rented roof over a home that is probably not 5000 sq/ft plus.