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Walsh - Duffy get up here, I got a job for you...

Research question of the day:
The collapse of the recent housing bubble -

Is it related to the grown number of "grow house" busts in the last 6 months, which is itself related to the growing number of money laundering operations that have been closed down?

I know that the Sacramento housing market was badly hit when over 300 homes were discovered to be purchased solely to work as places to grow pot and when those homes were closed they sat on the market, and that sudden large amount of distressed inventory caused the market to look weak.

If this is happening in this market, there is no reason to believe that its isolated here. If its happening on the same scale across the country...

Gray area offshore banks need to launder money, give loans to other banks, who move the money with high risk real estate loans, which are used in part to buy homes to grow pot, and all goes well until the pot houses are discovered, which also uncovers the real estate offices and mortgage companies that are funding the traffic, which when closed gives the reaction to the market that "houses arent selling..." which is symptom of the actual disease and not the disease itself.

More to follow...

Posted @ August 15, 2007 08:57 AM | Current Affairs