Why ? Because on that day the stock markets crashed. In a single day stock market lost 22% of its value. In one day. Real estate is not like that. The housing market train wreck of the late 1980's took several years to bottom out. It began, for a few regions in the U.S. about 1985. By 1992, the crash was still going on. It continued for another five years in some regions of the U.S.
That is a period of at least 12 years. We are about to go through it all over again.
From Fortune / CNN back in 1992:
Excerpt (my paragraphing)
NOT MANY PEOPLE realize just how stunningly big the commercial real estate debacle really is or how savagely it will continue to sweep through the U.S. economy.Does that sound familiar to anyone ?For a frame of reference, imagine that the stock market -- now worth around $3.8 trillion -- was to fall in value by 30%, a loss of about $1.1 trillion. Assume also that many of the market's most visible and active participants were on, say, 80% margin.
And finally, consider that the economics of the market after the fall suggested strongly that values would stay depressed for years.
Would these facts grab your attention?
Substitute ''commercial real estate'' for ''stock market,'' deflate the dollar figures by just a bit, and you've got the gist of today's drama.
There is nothing hypothetical about it. By one estimate the total value of all U.S. commercial real estate was around $3.5 trillion in 1989.
It is now perhaps 30% less. Just a diminution of a trifling $1 trillion or so, about twice what the U.S. stock market gave up on October 19, 1987, in the crash heard around the world. * * *
This time it may be even worse.
136 mortgage lenders have failed since late in 2006.
That did not happen back back in 1985 or 1987 or 1992 or 1995.
Californians know it even though the MSM will not report the truth. Already, prices for houses are down between 15% - 25% all across the state. Foreclosed houses are getting bids at 50% of value. Many empty houses sold at auction are not getting any bids. None. Nada. Nichts. Zilch.
But the Russian Mob has an active scam going. They tell their organized crime associates to move into vacant houses and squat. The squatters are filing bogus homestead papers. They sabotage the foreclosure. Demand ransom to move out.
Everybody has a new scam going these days. Organized crime. The local police are helpless. The fibbies dither and delay. This crisis was planned and engineered by the experts. 'Nuff said.
Time to wake up and smell the coffee. History is repeating itself. Again.
Goona get rough.
This crisis was planned and engineered by the experts. ‘Nuff said.
Uh, no.
This is what happened to Japan.
http://www.bloomberg.com/apps/news?pid=20601109&sid=a1IaEO5f_3kQ&refer=home
Almost 75 years since the last massive transfer of wealth.
Deja Vu. I was there.