Reply #1: Recession or adjustment? [View All]

[Goldstein1984]

The California economy is huge. I doubt the national economy can recover if California isn't.

Can housing recover? I wonder. When the world economy recovers, the price of energy is going to increase again. The cost of heating a lot of big homes may be greater in certain locations than mortgage payments. Thus, a lot of the large houses built during the housing bubble are going to be less desirable.

I'm no economist, but my gut tells me we're not experiencing a recession, we're experiencing an adjustment, and a different reality is waiting at the end.