[Bhaalspawn]

GM says it lost $15.5 billion for the second quarter. Holy hey. What are the implications for the value of real estate in the Detroit area? I'm guessing it's not good.

[GAisGreat]

You ask that as if it could possibly get any worse...?

[Dexterguy]

Not good at all, some areas are worse than others but the entire metro area and state for that matter are all hurting very bad in the real estate market. I hope that the Detroit 3 automakers eventually pull out of this. But I am also hoping that the State of Michigan and Metro Detroit job market can start to diversify and bring in a new job market and economy.

[GAisGreat]

Originally Posted by Dexterguy

But I am also hoping that the State of Michigan and Metro Detroit job market can start to diversify and bring in a new job market and economy.

Sad to say, but it's never going to happen!

[Bhaalspawn]

There's still plenty of room left for real estate to drop.

[baystater]

Originally Posted by GAisGreat

Sad to say, but it's never going to happen!

Why never?
Eventually if the worst happened and the Detroit auto industry would completely collapse, Detroit would have to diversify it economic base in order to even exist anymore. I'm not saying that it would be tomorrow but it probably will be in 10 to 20 years.
Unless you do truly believe that Detroit will become the next New Orleans where the people will probably leave a lot of that town to the ages.

[malamute]

10 to 20 years would be too long to do some people any good.

[baystater]

Originally Posted by malamute

10 to 20 years would be too long to do some people any good.

look you can make an omelet without breaking eggs. The American auto industry based in Detroit is toast. They made the wrong decisions, like killing the EV-1 and putting all there eggs into one basket (large SUVs). Now they're paying for it. There is nothing you, I, or anyone else can do about it. So now what? Well my guess is over the next couple of years there will be a rather large exodus of people out of Detroit in search for work in other parts of the state or in other states. This is both a good and bad thing. Bad in the short term because Detroit's tax base will decline and there will be alot of blight because of empty houses that will fall into disrepair. But it good in the long term because the exodus will allow for some breathing room to allow for new people to come in that are not latched to the auto industry. Further more for those natives who do want to stay will be forced to come up with some innovative ideas to spur economic growth. Lastly the exodus will allow for urban renew in alot parts of Detroit. basically tear down the old and build anew. I'm sorry but the old way of life is soon to be gone. But to say that Detroit will never change or revive itself is something I just don't believe. There will be future for Detroit. A new Detroit with new industry/services for the next century, perhaps beyond that.

[malamute]

Originally Posted by baystater

look you can make an omelet without breaking eggs. The American auto industry based in Detroit is toast. They made the wrong decisions, like killing the EV-1 and putting all there eggs into one basket (large SUVs). Now they're paying for it. There is nothing you, I, or anyone else can do about it. So now what? Well my guess is over the next couple of years there will be a rather large exodus of people out of Detroit in search for work in other parts of the state or in other states. This is both a good and bad thing. Bad in the short term because Detroit's tax base will decline and there will be alot of blight because of empty houses that will fall into disrepair. But it good in the long term because the exodus will allow for some breathing room to allow for new people to come in that are not latched to the auto industry. Further more for those natives who do want to stay will be forced to come up with some innovative ideas to spur economic growth. Lastly the exodus will allow for urban renew in alot parts of Detroit. basically tear down the old and build anew. I'm sorry but the old way of life is soon to be gone. But to say that Detroit will never change or revive itself is something I just don't believe. There will be future for Detroit. A new Detroit with new industry/services for the next century, perhaps beyond that.

It's not just Detroit that will be affected. I know of people already being laid off that are 4-5 hours from Detroit. One guy has just decided to work minimum wage service type jobs and just simplify his life.

I think innovative ideas are more likely to come from an area where people are heading. To me it seems that Michigan, especially the Detroit area is too glued to it's unionization way of thinking, believing the government will somehow come to the rescue.

You may be right though that Detroit will come alive for the next century -- but that's 92 years off.

[Ann_Arbor]

It's too bad that car plants here are too slow to change operations (making suvs and trucks to making hybrids); Asian plants seem a lot more agile. There should be a lot of optimism for can manufactures- the hybrid/ eco-friendly car market is up for grabs. Toyota is making bank off the Prius- a car that is huge in California, and someday the rest of the country.