This time they did ring a bell at the bottom

You know the saying about markets: “They don’t ring a bell at the top or the bottom”

The bell has just rang to announce the bottom of the housing market in California. From here on out, the prices are going up from insanely high to even more insanely high. Never again will ordinary affluent middle class people be able to buy a house in silicon valley, until the day dawns when the private property right to develop land is once again respected.

Various incompetently run or criminally run banks found themselves with lots and lots and lots of inflated and fraudulent mortgages. In due course, they found themselves with the real estate that was securing the mortgage. In the last few days they have held auctions in Silicon Valley and Sacramento to get rid of the properties. The properties sold like hotcakes, with bidders bidding them up, and up, and up.