02-08-2009, 05:24 PM
Florida went through much the same thing back in the late 70's when the real estate bubble burst. Left to its own devices, the market corrected itself and was level for 10-15 years then started another run up to the current bust. The private sector absorbed the losses over time. It didn't take any government "bailout" to bring about the corrections.
Boom and bust has been the economic history of Florida since the 1800's. Florida has an advantage in that it is a desirable place to live (weather, low cost of living etc.) especially for the retirees. Coastal areas tend to be the last to turn around, but inland areas are now starting to re-coop. New housing starts are still down around here, but re-sales were up 6.6% last month in my area. Again, there's been no influx of government bailout money, just the free market doing its thing.
Boom and bust has been the economic history of Florida since the 1800's. Florida has an advantage in that it is a desirable place to live (weather, low cost of living etc.) especially for the retirees. Coastal areas tend to be the last to turn around, but inland areas are now starting to re-coop. New housing starts are still down around here, but re-sales were up 6.6% last month in my area. Again, there's been no influx of government bailout money, just the free market doing its thing.