Reply #2: California has a HUGE real estate bubble

[Walt Starr]

and it's a leftover from the tech bubble of the nineties. I expect it to burst in a big way.

The East Coast also has a real estate bubble. There are other regional bubbles across the nation that are pretty big, too. Some examples would be Las Vegas, Atlanta, and Denver.

All in all, when the credit bubble bursts and interest rates go way up, the real estate bubble will burst very shortly thereafter. some areas will be devestated like California and the East coast. Other areas will be hit, but not as badly, like the Midwest.