Florida is “ground zero”
Interesting comments from Bill Fleckenstein on the recent article in the Wall Street Journal covering the housing bubble. Florida was characterized in the article as ground zero for the housing market,
The real power behind the housing bubble, i.e., irresponsible lending, was exacerbated in Florida.” Quoting from Mark Zandi, chief economist at Moody’s Economy.com: “There were more lenders, more realtors, more foreign investors” than the rest of the country — which is how a hot market gets really wild.
Investors should take note that many assets purchased at the peak of the run-up are now worth less. This situation creates a difficult decision for many investors. Should I hold the asset with the hopes that after the bleeding stops, it will come back…..or should I liquidate at at a loss. Every situation is different but these are questions that every investor needs to be evaluating with their property.
The housing bubble has popped [MSN Money]
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