Home Front

A blog about the economy and the Sacramento-area real estate market.

March 12, 2009
This was all predicted
In Nov. 2007 I had a long lunch with Scott Thompson, principal at Mortgage Resolution Services in Carmichael, that really just about blew my socks off. Thompson put forth a pretty serious scenario about where this economy might be headed - and referred me to an article by MSN Money's Jon Markman who was interviewing credit derivatives expert Satyajit Das.

I remember it vividly because people like the head of Morgan Stanley were saying we were in the 6th inning or so of getting through this. And Das said that actually we were still singing the National Anthem. It was a time when I was just starting to get my head around the complicated world of global mortgage finance that was starting to unravel.

 In Nov. 2007 when I first read that article the median priced home in Sacramento County sold for $290,000 - down 18.3 percent from $355,500 in Nov. 2006. That was a time when you could start to smell the gathering fear in the air.

 The article Thompson recommended - this one dated Sept. 20, 2007 - portrayed the very harsh economic landscape soon to unfold. Today, I stumbled across it again for the first time in ages and I see why it scared the daylights out of me then. Much of it has come to pass.

It's been 18 1/2 months since that story ran as a warning. In January, the median-priced home in Sacramento County sold for $165,000 and people are still trying to see where this all ends.

About Comments

Reader comments on Sacbee.com are the opinions of the writer, not The Sacramento Bee. If you see an objectionable comment, click the "report abuse" button below it. We will delete comments containing inappropriate links, obscenities, hate speech, and personal attacks. Flagrant or repeat violators will be banned. See more about comments here.

What You Should Know About Comments on Sacbee.com

Sacbee.com is happy to provide a forum for reader interaction, discussion, feedback and reaction to our stories. However, we reserve the right to delete inappropriate comments or ban users who can't play nice. (See our full terms of service here.)

Here are some rules of the road:

• Keep your comments civil. Don't insult one another or the subjects of our articles. If you think a comment violates our guidelines click the "report abuse" button to notify the moderators. Responding to the comment will only encourage bad behavior.

• Don't use profanities, vulgarities or hate speech. This is a general interest news site. Sometimes, there are children present. Don't say anything in a way you wouldn't want your own child to hear.

• Do not attack other users; focus your comments on issues, not individuals.

• Stay on topic. Only post comments relevant to the article at hand. If you want to discuss an issue with a specific user, click on his profile name and send him a direct message.

• Do not copy and paste outside material into the comment box.

• Don't repeat the same comment over and over. We heard you the first time.

• Do not use the commenting system for advertising. That's spam and it isn't allowed.

• Don't use all capital letters. That's akin to yelling and not appreciated by the audience.

You should also know that The Sacramento Bee does not screen comments before they are posted. You are more likely to see inappropriate comments before our staff does, so we ask that you click the "report abuse" button to submit those comments for moderator review. You also may notify us via email at feedback@sacbee.com. Note the headline on which the comment is made and tell us the profile name of the user who made the comment. Remember, comment moderation is subjective. You may find some material objectionable that we won't and vice versa.

If you submit a comment, the user name of your account will appear along with it. Users cannot remove their own comments once they have submitted them, but you may ask our staff to retract one of your comments by sending an email to feedback@sacbee.com. Again, make sure you note the headline on which the comment is made and tell us your profile name.

hide comments

On October 14, The Sacramento Bee will temporarily remove commenting from sacbee.com. While we design the upgrade, we encourage you to tell us what you like and don't like about commenting on sacbee.com and other websites. We've heard from hundreds of you already and we're listening. Please continue to add your thoughts and questions here. We also encourage you to write Letters to the Editor on this and other topics.

Jim Wasserman on Twitter

Follow "jimwasserman" on Twitter

October 2013

Sun Mon Tue Wed Thu Fri Sat
    1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31