Maybe re advocate for the “dictatorship of the proletariate” I, for one, own one of those “luxury” cars you mentioned and I paid half down and financed the rest…it didn’t come out of my home equity. I’ll bet I’m not alone there either.

I don’t think anybody is argueing about whether or not there’s a recession…my point is simply that it’s in times like these that fortunes are made. Look at Warren Buffett. Buyer’s who step up right now will be rewarded because they’ll be able to negotiate downward. Most people will wait until everyone else comes back before they’ll jump back in because they think there’s safety in numbers…while the truly smart people will have gotten in now.

P.S. Sorry to hear that times are a little rough right now Liko…maybe you could win the foto contest? I’d be happy to help you out with a gift card!

Just goes to show the credit abuses of last few years that I mentioned a bit in my last post. I am quite sure there are many such houses in Foster city and other relatively well to do markets. Where do you think all the cash for Luxary cars that you see on the streets came from?

Silicon valley companies have started to layoff people: HP, Yahoo, start ups backed up VC funding etc. Lot of money in silicon valley is tied to stock market and guess what its on a downward trajectory.

I can easily see house prices falling by 20% or so in foster city from current listed prices over the next one or two years depending upon how deep of a recession we get into. The question is not whether we have a recession or not, but how bad it is. Some say we are already in recession and some say that its going to be worse than both 1991 and 2001 recession.

Don’t know about you, but I am certainly tightening my belt. The waiters at the local restaurant that I frequently visit tell me that they are seeing slight drop in customer visits recently. Good luck to those who are buying houses right now – certainly brave souls.