> This is true all over.
Right. The New York Times recently had articles on the situation in California and in the county north of Fort Meyers. The story on Fort Meyers is especially interesting because it gets into the details of how the economic boom goes bust on a local level. The new construction stops, which leads to the closure of real estate offices and construction workers being laid off. The construction workers move out of town or can't afford to eat at the local restaurants, so they start having problems.
Standard stuff, only being replicated all over the U.S.
This situation raises lots of interesting questions. How long will this situation take to play out? Will it lead to a pretty lengthy recession? How will this affect rents? Will the government bailout just benefit the banks or will the homeowners end up being evicted and screwed?
When you combine this with rising fuel and food prices, how bad will the economy get?
Chuck