When we visited the property it was wood frame with extensive termite damage, loose and old electrical wiring, and collapsing roof.  

Liability, on the other hand, is the concern of the occupant in a warehouse setting, and often contains provisions to limit the Owner's liability almost down to nothing, notwithstanding a roof collapse.   

Berliners still feel today.East Berlin Real Estate[dropcap]E[/dropcap]ast Berlin was ruled by the communists until the collapse the GDR regime in the fall of 1989.

But I also am not of the belief that the market is about to totally collapse. 

You made a pretty compelling case for why California may continue to appreciate in the future and all of your points are valid.However, offsetting those things are the fact that the United States is facing financial collapse in the near future (if not the immediate future).

My kitchen ceiling collapsed.

As we entered the fourth quarter of 2008 our financial system teetered on the edge of collapse, and the banking industry's ability to raise capital in the face of mounting loan and investment losses became impossibly difficult.

However, as the economy collapses (an absolute certainty), times will become more desperate and the government will take more radical action.

A Story within the Story Following the collapse of the biggest credit bubble in history, there has been no shortage of finger pointing and the hedge fund industry, which has always had an uncanny ability to be at the wrong place at the wrong time, has yet again been at the centre of attention.

After the great recession, FNMA and FMCC were about 100%... they maintained liquidity virtually single handedly after Lehman Brothers and other investment banks (major firms securitizing home loans) collapsed.