Wednesday, November 22, 2006

Deja Vu

No, I'm not going to talk about Denzel's new film. Rather, the news of Google going up to $500 a share, the acquisition of YouTube, and the real estate business are giving me a sense of Deja vu. All these things are so hyped off the charts that it reminds me of the Internet bubble burst. Many have addressed the real estate problem. I met a banker on a plane on the way to LA. We talked about the expensive properties on the west coast. But then a NY Times paper was on board and it talked about the fact that housing is slowing down and people are waiting and speculating the market. This is just the beginning, we thought. Again, this was confirmed a few days ago when the reports came out to show new permit for housing is at its 9 year low. What does this mean? People will no longer be buying new houses. Therefore, construction workers are no longer required. These workers will have to find different jobs or apply for unemployment. Long story short, the economy will suffer from this. Properties will be of less value. A lot of people will be in serious debt from the bank loans. In asia, this is starting to show where people can't pay off their car loan and new cars are being reposed. Even used-car sales are at its all time low.

This could be a good thing for filmmakers wanting to shoot in Asia. Things are already cheap here. It will only get cheaper.

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