Boom #1: You were too young to even see it. Even if you see it, you will shrug it off and say “these people are lucky…, I won’t have that luck and money”.

Boom #2: That was 10-12 years after boom #1, you had some money. You bought your first house. But the timing was not that good. You bought right before the collapse. Then you got side-tracked by all the “end of world” talk about real estate. You felt very good at mocking these dummy investors: “How dummy are they! still buying when nobody is buying…”. You took pleasure by cursing them.

because Rich men can get access to powerful information that poor men can’t. Information is power, richmen understand this very clearly. Poormen lose for lack of information. Poormen is even more unfortunate to believe in the fake ‘true’ that richman’s controlled Wall Street or governments are spreading, therefore make them even poorer. Richmen enjoy so much when they created and spread fake true to scare poormen. So that scareful poormen can sell when they can buy, and buy when they can sell. Richmen and poormen share the same market. But poormen serve as the feeders to richmen’s pocket.

Banks are skewing the price structure. If this situations go on for long time, then, the whole region’s pricing structure may get pulled down. Bank’s 50% price cut is definitely a biggest enemy to regular sellers, causing regular sellers impossible to compete.

However, in inner suburbs, i.e., the wealth belt, the pricing should stay relatively stable. I would expect some 20% drop, that’s about it. However, in outer suburbs where most lower middle class lives or where hispanics and poorer immigrants live, things are getting worse and worse.