If you don’t want to loose your hard earned money, its better to stay away from bidding wars if you sense you are getting involved in one. The economy is down which is no brainer. From my experience even during the peak times, most of the times i lost money whenever i won a bidding war. You should stay away from them for the following reasons
1. By winning a bidding war, you are doing no favour to yourself other than the personal satisfaction of winning. You are paying the top price for it by winning. Its a strict no if you are a short term flipper.
2. Don’t even think about getting into a bidding war, if you don’t need the name badly(i mean only if you have plans of development or other solid back up plan for the name).
3. Right now is definitely not the time to win a bidding war. Hold your money tight and make wise decisions not emotional ones.