Want to know what was driving our economy? The BushII years, in a nutshell. Very fancy house for sale in California. Purchased in 2001 for $397,000. Asking price is $1,195,000. Some context, from the Irvine Housing Blog (01.25.08), via Eschaton:
"This homeowner went to the housing ATM 8 times over a 5 year period and pulled out $820,900. Now they have a property priced at a WTF asking price hoping they can find some knife catcher to come pay off their bills." Unforgiven"Even if you wanted to buy this house, would you do it knowing that you were about to pay for $820,900 worth of consumer spending (They may have spent $200,000 on the renovation, but please spare me the BS about investment or illness or any of that crap. Look at the pattern of withdrawals. They spent it, and you know it.)" Hope the homeowners had a good time. Note to the chumps holding the mortgage: good luck getting your money back.