No. of Recommendations: 2

<<<Because she does not want to recognize the reality of the marketplace.>>>

"Well, that's entirely possible but YOU try telling my 76 year old mother that the piece of real estate she's been pinning her hopes of a cushy retirement on for the past 10-15 years may not be all-dat..."

Thanks, but no thanks. I have enough of my own relatives like that.

"For the first 50 years she was investing in real estate, all it ever did was go up. I don't think she foresaw it could tank like this. She used to tell me RE was a sure thing...."

Then she has been incredibly lucky and not paying attention (no offense intended) but California, Colorada and Texas all experienced downward real estaet prices in the 1980s, and SP has written about similar issues in Seattle (though I do not recall if it was the 70s or 80s). The 1986 tax law severely impacted much commercial real estate, too.

"She resides, by the way, in Michigan. If you look at CNN yesterday you'll see that it's the only state, out of 50, where the population actually decreased in the past 10 years. More people left Detroit due to unemployment and foreclosures than left New Orleans after Hurricane Katrina, and they're bulldozing entire neighborhoods. Detroit went from the 4th largest city in America to the 18th...Mass exodus...yes, the worst possible place to own real estate right now. Highest unemployment rates in the nation, IIRC."

Sorry to hear that. It is difficult for me to imagine. There is another regular poster who posts from and about Michigan and Michigan real estate prices.

"25 years ago the auto industry was rock-solid, though, so who knew?"

1986? Honda and Toyota had already made huge inroads by then, and US car manufacturers were lagging is design and hardly paid any attention to gas consumption. Chrsyler had already been bailed out by the Federal government. I do not think that end was necessarily written, but I would hardly have called it sock solid either.

Regards, JAFO

When GM crashed, their suppliers crashed, people lost work, malls and small businesses crashed, houses repo'd, vicious cycle...
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.