Ask500

This is what the country actually looks like.

http://en.wikipedia.org/wiki/File:ElectionMapPurpleCounty.jpg

I would add to the above that there are more opportunities and less competition in the less populated areas of the so-called red states, which is better for smaller emerging companies. While there probably is a grain of truth in all the above answers, they are oversimplified. For instance, California, which is "blue" for Presidential elections but very "red" in other respects such as Governorship (let us not forget from where Reagan came from)suffered from a severe housing bubble which drove people out of the state, even though Property taxes were relatively low because of Prop 13. (And this started before it went bankrupt). I would suspect you would many different reasons for the exodus from various states. I wonder what kid of effect this will have on future elections - will people move to the counties that share their political views, or will they start to "dilute" the red states?

Yea, but scissors cuts paper, so paper ain't all that.

Was it overvalued to begin with?