The economic base in San Diego really couldn't afford what had happened to the market. That base seems be getting lowered as the drop in housing trails.

I got hooked in when you mentioned Cape Coral.  I'm just a stone's throw.  They had 19 building permits issued in September.  It's like being at a party when the music cuts out.

"The real reason for the sub prime mortgage market collapse?"

Hi Brian - I haven't click for the answer yet, but here are my 2 cents on it. (1) The combination of gross amateur speculation, (2) untimely risk aversion cycle against fed policy run-up on rates, and (3) non-existent oversight of the industry.*

* i.e. 19 year old's driving 7 series BMW's selling 2-3 year ARM with max YSP and points to borrowers unable to repay. I saw this waaaaay too often. Never-mind the Option ARM chop-shops (whole other story).

* i.e. wanna be appraisers applying for class's by the hundreds every 8 weeks (local school) only to work for the next "shmoe" who recently upgraded to "full license" (not certified) who has less than 2 years experience and would do anything for work...

* i.e. 2-week crash course agency licensing allowing for anyone (who does not necessarily have to be able to read and write basic English) to push and manipulate their broader circle of influence to buy for fat commissions.

My apologies for venting on your post, Brian. But this is a touchy subject for me and I'm glad you posed the question.

Click through, Michael.  It was just success that killed sub prime

Hey Brian,

I caught that. Just needed to vent. Sorry about that.

What this article proves, Michael, is why Wall Street needed to be listening to LOCAL appraisers.