DOT.COM TECHNOLOGY BUST...MORTGAGE REAL ESTATE BUST...
same thing, different industry. AXR will hover btn $5 to 20 shrs for yrs, like the way it was before recent irrational exeuberant land rush past 5 yrs...You are not gonna see those dot.com price again in AXR--EVER !!!
There are BIG similarities to the Dot.Com Bust and the Real Estate Bust. Both became WAY over valued. Both Stocks crashed and for the survivors became WAY UNDER valued before making a come back years later.
Real Estate is a little luckier, since the FED is trying to provide some support.
how is amrep like the dot.bomb fiasco of the bay area? i don't see any similarity. i was in the bay, for several years, when the dot.bomb thing happened. alot of my friends lost a lot of money. i didn't. i was in real estate. they where in stocks. i'm buzzed. anywho, the dot.bomb..wow, i think i may just go smoke a joint. anywhere, the dot bomb thing was partly due to lack of consumer purchasing. people are still purchasing in rio rancho. does this make any sence to you?
You are incorrect.. 1. all real estate is local 2. lower interest rates = weaker dollar = higher inflation higher inflation = higher land prices 3. weaker dollar = foreign inflow of capital into real estate 4. 2008 is election year so mortagage rates will decline.
It happened in the 70's, in the 80's and in the 90's and it will happen again.