Posted By:
CoreyRS.hanusForgetting for moment about the ills in the real estate/credit markets, what about the astronomic increase in cards over the past several years? No market can keep rising at such stratopheric rates without having a correction. And typically the greater and longer the increase before the correction, the greater the correction. So then it seems to me that two forces might be at work on depressing card prices, the worsening economy AND the fact that a correction in the card market is long overdo. In the next month or two several major auctions will be taking place. It will be interesting to see how they do.
Finally, I do not share the pessimism that we are about to undergo a depression. Recession yes, depression no. The only good thing though, to come from all this is that FINALLY people are seeing the need to regulate the credit markets as regards to real estate lending, much as in the wake of the Great Depression people recognized the need to regulate the securities markets. Being in the real estate business, I can tell you that some of the transactions that took place were outrageous, and it is unfortunately the case that people are not knowledgable enough to look out for their own affairs. Regulation is needed (and that is coming from a guy who is a staunch conservative in regard to economic policy).