I still firmly believe that Gary will come over to the housing bubble camp sometime soon. While he completely lost his mind in 2005-2006, so did everyone else in his industry. But, unfortunately, by then, his believability will be gone.

It only took 1 year from then. Not to toot my own horn because, frankly, one can only deny reality for so long. I just hope the rest of the realtors who hang on his every word will catch up to the rest of us.

Chuck Ponzi

Gary Watts will still burn in hell.

I think something you’ve left out of that list is Job Losses…particularly in SoCal. Unless of course that is implied in your comment about a recession/despression.

As a job seeker in SoCal, I can tell you that it is pretty bad out there. Employers have gotten very skittish about hiring anyone over $100K…even outside of the REIC related businesses.

I’ve been warning those over at Piggington’s for sometime now that they everyone needs to reassess their employment / Cashflow situation very closely in the next few months and ask some very tough questions about the long term viability of their own job and the business model of their employers / customers. No one seems to be taking this seriously as of yet, but it will get worse as liquidity gets tighter.

The FDIC is expecting a lot bank failures in the next 18 mos or so. One of the scenarios I see playing out is that small to med size companies see their LOCs tightened as a result of liquidity concerns and bad CRE investments by local banks. That leaves CFOs / Controllers in the old Working Capital squeeze and fixed expenses are always the first things on chopping block (layoffs).