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Home Publications Blogs Beat the Press Life in Central California After the Housing Crash

Life in Central California After the Housing Crash

Tuesday, 08 February 2011 06:53
USA Today has a good piece on the devastation in central California following the collapse of its housing bubble. Meanwhile, Alan "who could have known" Greenspan was giving the keynote address at the Brookings Institution at a conference on restructuring the system of mortgage financing.
Comments (6)Add Comment
written by izzatzo, February 08, 2011 6:49
In a cost-benefit analysis on the effect of states releasing prisoners early to reduce crippling debt, a major benefit was found to be the educational effect of keynote speeches given to their victims for large fees.

The title of this particular speech was corrected and changed to 'The Bubble's Willing Executioners' after it was given by a particularly notorious con artist jailed for stealing billions, known as Greenspan Madeoff Gotoff.
written by dunkelblau, February 08, 2011 9:19
Unfortunately the commute on 152 between Los Banos and Silicon Valley is difficult, not so much long, just painful to drive day in and day out on a narrow and windy single-lane mountain road. If someone can come up with a convenient and reliable mass transit system between the two, I think the housing recovery in Los Banos could be greatly accelerated because Silicon Valley housing remains sky high so a detached home is still unaffordable to anyone without stock options. Even at its peak Los Banos housing was less than half of what Silicon Valley fetches today.
written by PeonInChief, February 08, 2011 9:41
The worst thing about the housing collapse in the Sacramento/San Joaquin valleys is that so many of the underwater homeowners are in their 50s. Some of them were driven to purchase in the inland areas because they'd never be able to buy on the Coast, while others took their equity from smaller houses to buy bigger houses at bubble prices. Even if they walk, they'll never recover from this.
written by S.D. Jeffries, February 08, 2011 11:03
Whatever persuaded Brookings to invite the know-nothing, I'll apologize for it after the Fall, former important person to speak to them I wonder? Maybe they thought Greenspan could act as an object lesson for what not to do while watching a bubble inflate.
If nothing else
written by Matt, February 08, 2011 12:29
If nothing else, you have to hand it to the spinmeisters that have convinced the poor suckers in Los Banos that it's somehow "immoral" to default. It's like selling somebody a put and then tricking them into thinking puppies die if they exercise it...
written by PeonInChief, February 08, 2011 1:14
You're right, Matt. But I also wonder whether people who bought in the Valley and kept their jobs on the coast can keep up the commute for 10, 15, 20 years. Many people who moved to Sacramento and tried to do that either moved back to the Bay Area or got jobs here. Commuting was just too much--particularly when it meant you hardly ever saw your family.

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About Beat the Press

Dean Baker is co-director of the Center for Economic and Policy Research in Washington, D.C. He is the author of several books, his latest being The End of Loser Liberalism: Making Markets Progressive. Read more about Dean.