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November 8, 2007


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Recession isn't some magic that happens beyond our control. A recession can be caused by any number of large economic factors - and be isolated locally, nationally, or internationally.

The failure of American automobiles cause a recession in Detroit. Bust of the Dot com caused a minor recession in the SF Bay Area.

In short, a recession is caused by decisions made by people like you and me.

In other words, a recession cause by real estate just means the laymen realized that the market in certain areas are overpriced, and refuse to play along. This destabilization causes the price to return to a more competitive level.



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