Just curious about employment

[Terwilliger]

If these are the wages you say they are and the jobs available are mostly service jobs, how are these people paying the mortgages on these new subdivision homes that are built check by jowel and cost $250,000-$350,00? Are they really selling these homes or are the banks going to go into the real estate business?

[huntman58]

People get creative and do arms interest only things like that. In the end the only winners are the banks. When you have big house payments that are over one half to two thirds of your take home income it is nothing but trouble waiting to happen. Kind of like Texas in the 80’s. People were sending in there keys to the banks as the houses were worth less then they paid for them. Idaho in the early 90's had a housing shortage same with rentals now look at it; it is over built but still growing. What happened when they end up with an overage in housing prices fall just as there starting to do in calif of late?