Eye of the housing hurricane

[Joanne98]

Mike Morgan has another long awaited update on the Florida housing situation called In the Eye of the Housing Hurricane.


Here’s a lesson many Floridians have learned the hard way: All hurricanes have three parts—the front half, the eye and the back half. The eye is a deceiving quiet period at the center of the hurricane. The eye lulls you into believing the storm has passed and all is well.

In fact, the back half of a hurricane can be far more devastating than the front half. The front half of a hurricane does a lot of damage and weakens many structures. Then, when the back half hits, houses, buildings and personal property teetering on the brink of failure are utterly destroyed. Moreover, since the wind is coming from the opposite direction, anything strong enough to resist the first half is tested again by the back half.

This is exactly what’s happening in Florida’s housing and financial markets. We are in the eye of the hurricane, and the back half will hit us twice as hard as the front.

http://globaleconomicanalysis.blogspot.com/2008/04/eye-of-housing-hurricane-mike-morgan.html

[trumad]

1. Good post

I tried to dabble in the short sale market and found the lenders belligerent and in fantasy land. The wouldn't budge and now it's starting to come home and roost for them.

your post hits it dead on.