From the Ann Arbor News, we have: Some sellers seek divine intervention.
To help them through the tough market, some sellers are turning to the age-old practice of burying a St. Joseph statue in the ground near the home's "for sale'' sign - an act that's supposed to bring good luck in selling the house.
And, from the Daily Press in Michigan, we have: Real estate superstition has believers in this area.
St. Joseph is known in the Catholic religion as the patron saint of various things and places. Pope Pius IX named him the patron of the Universal Church in the late 1800s. He is also known as the patron against doubt and hesitation, as well as the patron saint of fighting communism and of happy death.
But apparently if you bury a statue of St. Joseph upside down in your front yard, he becomes the patron saint of homes that sell quickly — or so the belief goes. So is the recent downturn in the housing market sending more residents out to bury a statue of St. Joe?
I have a much better idea -- drop the fucking price!
Incidentally, this is the same Michigan which has gotten whipsawed by layoffs. The majority of jobs were connected to GM and Ford (directly or indirectly.)
Michigan's median income has plummeted 12% in the last six years. Not a single county or municipality has reported an increase in median income in the last six years.
21% of Detroit is unemployed. Yep, 21%. That's not a recession, that's a full-blown Cat-5 depression!
(Ref: Detroit Free Press.)
Obviously, they can't sell by lowering the price. There are no buyers, and even if there were, chances are these idiots have already spent their equity in the form of HELOC's so they would have to bring money to the table.
I too would pray for divine intervention if I were in their position!
Thursday, August 31, 2006
The Greatest Fools
From the Washington Post, another elite paper that's scrambling to make revenues, we have Tomoeh Murakami Tse writing about: Home Builder's New Incentive: A Flexible Price.
To ease buyers' worries about declining prices, Mid-Atlantic Builders will adjust its sales contract if the price it is charging for one of its houses falls from the time a customer signs an agreement to 45 days before settlement.
Wooten and his wife, Courtney, signed a contract last month to buy a $1.2 million house in Mid-Atlantic's new Bradford's Retreat subdivision at Woodmore North. They are among the program's first customers.
"I feel pretty comfortable where the Washington, D.C., market is," said Wooten, 33, a regional manager for Fannie Mae. "I really don't think that they would have offered this price guarantee if the prices weren't fairly priced currently."
Where do I begin?
Firstly, a 45 day guarantee means nothing for houses. This is not a toaster, or a washing machine.
Secondly, how are you going to get comparable prices? Houses, in general, are not fungible assets so you really can't compare. Additionally, if they are the only builder in the area, they'll change the price after 45 days.
Thirdly, does anyone feel that a 33-year old manager shouldn't be buying a 1 million dollar house? Maybe he's independently wealthy but I have my doubts.
Lastly, his final comment is one of the most asinine things I've heard.
If this is the typical "intelligence" of Fannie Mae employees (who should know better,) we're going to be in a world of hurt!
To ease buyers' worries about declining prices, Mid-Atlantic Builders will adjust its sales contract if the price it is charging for one of its houses falls from the time a customer signs an agreement to 45 days before settlement.
Wooten and his wife, Courtney, signed a contract last month to buy a $1.2 million house in Mid-Atlantic's new Bradford's Retreat subdivision at Woodmore North. They are among the program's first customers.
"I feel pretty comfortable where the Washington, D.C., market is," said Wooten, 33, a regional manager for Fannie Mae. "I really don't think that they would have offered this price guarantee if the prices weren't fairly priced currently."
Where do I begin?
Firstly, a 45 day guarantee means nothing for houses. This is not a toaster, or a washing machine.
Secondly, how are you going to get comparable prices? Houses, in general, are not fungible assets so you really can't compare. Additionally, if they are the only builder in the area, they'll change the price after 45 days.
Thirdly, does anyone feel that a 33-year old manager shouldn't be buying a 1 million dollar house? Maybe he's independently wealthy but I have my doubts.
Lastly, his final comment is one of the most asinine things I've heard.
If this is the typical "intelligence" of Fannie Mae employees (who should know better,) we're going to be in a world of hurt!
Monday, August 28, 2006
Thursday, August 24, 2006
No journalist left behind!
From the AP, we have Adrian Linz writing about: Home sales down 33%.
In the Pensacola area, the number of single-family sales of existing fell 8 percent in July compared to the previous year. The median sales price was down 4 percent, from $236,600 in July 2005 to $169,200 last month.
Seems to me that's a 28.5% drop in median sales price.
D00d, U 2 l33t!!!!!!!
In the Pensacola area, the number of single-family sales of existing fell 8 percent in July compared to the previous year. The median sales price was down 4 percent, from $236,600 in July 2005 to $169,200 last month.
Seems to me that's a 28.5% drop in median sales price.
D00d, U 2 l33t!!!!!!!
Wednesday, August 23, 2006
Intergenerational In-equity
From the esteemed BBC, we have Parents to pass on mortgage debt.
The "Inter-generational mortgage" would allow homeowners to take out an interest-only mortgage - and pass on both repayments and home when they die.
This is the stupidest thing I've seen since, well, the late 80's when Japanese banks created "100-year mortgages".
Why would anyone be so stupid to sign up for this nonsense?
And, why can't the BBC report the obvious -- that you are merely renting from the bank with an option for your children to buy? So just rent, and forget about burdening your children.
Japan was not "different". House prices plunged 90% over the next 15 years.
Neither are the UK, the US, and pretty much most of the developed nations (which have an extreme "housing bubble".)
This is the deep breath before the plunge!
The "Inter-generational mortgage" would allow homeowners to take out an interest-only mortgage - and pass on both repayments and home when they die.
This is the stupidest thing I've seen since, well, the late 80's when Japanese banks created "100-year mortgages".
Why would anyone be so stupid to sign up for this nonsense?
And, why can't the BBC report the obvious -- that you are merely renting from the bank with an option for your children to buy? So just rent, and forget about burdening your children.
Japan was not "different". House prices plunged 90% over the next 15 years.
Neither are the UK, the US, and pretty much most of the developed nations (which have an extreme "housing bubble".)
This is the deep breath before the plunge!
Monday, August 21, 2006
What exactly does Phoenix, AZ produce?
When I was little, and studied Geography, we had to memorize all kinds of (what we then thought) were useless facts.
What was the chief cash crop of Thailand? What were the largest exports from Russia? What was the biggest industry in Australia?
So, what exactly does Phoenix, AZ contribute to US GDP? (sixth largest city and all!)
Population: 1,461,575
Houses for Sale: 53,350
So, 3.65% of Phoenix wants to sell their houses?
Do you see the problem?
What was the chief cash crop of Thailand? What were the largest exports from Russia? What was the biggest industry in Australia?
So, what exactly does Phoenix, AZ contribute to US GDP? (sixth largest city and all!)
Population: 1,461,575
Houses for Sale: 53,350
So, 3.65% of Phoenix wants to sell their houses?
Do you see the problem?
Saturday, August 19, 2006
Is this worth my time?
From the Arizona Republic, we have Betty Beard writing about how hairy the situation has gotten for housing in More homes for sale, prices stay high.
Although there is a record number of homes on the market in the Southeast Valley, including about 4,000 in Chandler, realtors say the city is well positioned to hold its housing values.
Readers, you know the economic drill!
But while the city's housing market has a lot going for it, it's still a tough market for sellers - taking an average 74 days in Chandler.
Is it going to hold its values, or is it a tough market?
Pick a lane, bitch!
"That's just too many houses. As a Realtor, how do you pick out what you are going to show the buyer?" she said.
Note the capital "R" in "Realtor". The NAR asked its minions to use the trademark (I kid you fucking not!)
Also, picking houses that your buyers like is your job, bitch! That's why you get paid 6% of the commission, and that's why you're going to be a historical relic thanks to the Internet.
Oh, fuck it! This is like shooting fish in a barrel.
Although there is a record number of homes on the market in the Southeast Valley, including about 4,000 in Chandler, realtors say the city is well positioned to hold its housing values.
Readers, you know the economic drill!
But while the city's housing market has a lot going for it, it's still a tough market for sellers - taking an average 74 days in Chandler.
Is it going to hold its values, or is it a tough market?
Pick a lane, bitch!
"That's just too many houses. As a Realtor, how do you pick out what you are going to show the buyer?" she said.
Note the capital "R" in "Realtor". The NAR asked its minions to use the trademark (I kid you fucking not!)
Also, picking houses that your buyers like is your job, bitch! That's why you get paid 6% of the commission, and that's why you're going to be a historical relic thanks to the Internet.
Oh, fuck it! This is like shooting fish in a barrel.
The Constancy of Stupidity
I've had more than a few comments (privately) about the blog, and why the majority of the articles seem to be connected with "real estate"?
Well, the answer, my friends, is that real estate is the "obsession du jour".
Stupidity follows the current obsession.
As the obsessions shift, I expect the topics to shift too. However, the underlying economic fundamentals stay the same.
Well, the answer, my friends, is that real estate is the "obsession du jour".
Stupidity follows the current obsession.
As the obsessions shift, I expect the topics to shift too. However, the underlying economic fundamentals stay the same.
Friday, August 18, 2006
Lies, lies, and statistics
We're going to do some investigative journalism with this post.
Our starting point will be an article on CNN Money that was posted recently on May 18, 2006 : Most Affordable housing markets
In Los Angeles, the least affordable big metro area, only 1.9 percent of the homes sold were within the reach of families earning a median income for the city of $56,200.
They have a table which I urge you to look up.
Now, take a look at this press release by the California Association of Realtors : Housing affordability at 23 percent.
The percentage of first-time buyers in California able to afford a median-priced home stood at 23 percent in the second quarter of 2006, compared with 30 percent for the same period a year ago, according to a newly developed index released today by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).
Mysteriously, Los Angeles affordability has jumped to 19%, ten times from two months ago.
Wow! most of LA seems to have hit the lottery!
Hmmmm.... could it be that this "newly developed index" fudges with the statistics?
Yep!
Ironically, they are so stupid that they give you the answer:
C.A.R. began producing its Housing Affordability Index (HAI) in 1984. At that time, fixed-rate mortgages were the prevailing form of financing a home purchase, while the calculations used to produce the HAI reflected a 20 percent down payment. The methodology also assumed a monthly payment for principal, interest, taxes and insurance that was no more than 30 percent of a household’s income.
A little later they list the monthly payment for the median home, and the minimum monthly income needed to qualify.
Simple calculation:
3,340 * 12/100,320 = 40%
So now they expect people to shell out 40% of their gross income instead of 30? Of course, the index jumped!
However, that doesn't change economic reality.
Of course, one would never expect a self-serving group like CAR to play hard and loose with the facts!
And, journalistic rags like the San Luis Obispo Tribune and Whittier Daily News publish this steaming pile of dogshit.
Our starting point will be an article on CNN Money that was posted recently on May 18, 2006 : Most Affordable housing markets
In Los Angeles, the least affordable big metro area, only 1.9 percent of the homes sold were within the reach of families earning a median income for the city of $56,200.
They have a table which I urge you to look up.
Now, take a look at this press release by the California Association of Realtors : Housing affordability at 23 percent.
The percentage of first-time buyers in California able to afford a median-priced home stood at 23 percent in the second quarter of 2006, compared with 30 percent for the same period a year ago, according to a newly developed index released today by the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.).
Mysteriously, Los Angeles affordability has jumped to 19%, ten times from two months ago.
Wow! most of LA seems to have hit the lottery!
Hmmmm.... could it be that this "newly developed index" fudges with the statistics?
Yep!
Ironically, they are so stupid that they give you the answer:
C.A.R. began producing its Housing Affordability Index (HAI) in 1984. At that time, fixed-rate mortgages were the prevailing form of financing a home purchase, while the calculations used to produce the HAI reflected a 20 percent down payment. The methodology also assumed a monthly payment for principal, interest, taxes and insurance that was no more than 30 percent of a household’s income.
A little later they list the monthly payment for the median home, and the minimum monthly income needed to qualify.
Simple calculation:
So now they expect people to shell out 40% of their gross income instead of 30? Of course, the index jumped!
However, that doesn't change economic reality.
Of course, one would never expect a self-serving group like CAR to play hard and loose with the facts!
And, journalistic rags like the San Luis Obispo Tribune and Whittier Daily News publish this steaming pile of dogshit.
Think Tank
From the Long Island Business News, we have Dawn Wotapka Hardesty (no! I'm not making this up) reporting on Changing of the yard: Buyers take control.
In December, he listed his West Lake Drive ranch at $539,000, $70,000 less than he could have gotten last year. Even so, the price seemed reasonable, he said, because he spent about $200,000 to renovate the house with a new roof and siding and a $60,000 kitchen upgrade.
On Father’s Day, however, he dropped the price to $499,000.
"This year’s market dictated the price," Killian said. "I think my house is worth a lot more, but the market just doesn’t."
Firstly, the market always dictates the price.
Secondly, you may "think" that you're as good looking as Brad Pitt, but if the ladies don't, you won't be getting much action, get my drift, bubba?
In December, he listed his West Lake Drive ranch at $539,000, $70,000 less than he could have gotten last year. Even so, the price seemed reasonable, he said, because he spent about $200,000 to renovate the house with a new roof and siding and a $60,000 kitchen upgrade.
On Father’s Day, however, he dropped the price to $499,000.
"This year’s market dictated the price," Killian said. "I think my house is worth a lot more, but the market just doesn’t."
Firstly, the market always dictates the price.
Secondly, you may "think" that you're as good looking as Brad Pitt, but if the ladies don't, you won't be getting much action, get my drift, bubba?
Dumpster Diving
This is an article about economic stupidity, and a rare time that the press actually reported it.
From MSN, we have Try Dumpster-diving, airline tells workers.
The fifth-largest U.S. carrier put the tips in a booklet handed out to about 50 workers and posted for a time on its employee Web site. The booklet was part of a 150-page packet to ground workers, such as baggage handlers, whose jobs will likely be cut after their union agreed to allow the airline to outsource some of their work.
Prepared with the help of an outside company, the booklet encourages employees to manage their money better and prepare for financial emergencies. In one section, called "Preparing for a Financial Setback," Northwest suggests that workers can take "a date for a walk along the beach or in the woods." It also says they should not be "shy about pulling something you like out of the trash."
People who know me know that I'm rarely at a loss for words, but this one simply beggars belief!
Sign o' the times!
From MSN, we have Try Dumpster-diving, airline tells workers.
The fifth-largest U.S. carrier put the tips in a booklet handed out to about 50 workers and posted for a time on its employee Web site. The booklet was part of a 150-page packet to ground workers, such as baggage handlers, whose jobs will likely be cut after their union agreed to allow the airline to outsource some of their work.
Prepared with the help of an outside company, the booklet encourages employees to manage their money better and prepare for financial emergencies. In one section, called "Preparing for a Financial Setback," Northwest suggests that workers can take "a date for a walk along the beach or in the woods." It also says they should not be "shy about pulling something you like out of the trash."
People who know me know that I'm rarely at a loss for words, but this one simply beggars belief!
Sign o' the times!
Thursday, August 17, 2006
Diarrhoea, Gonorrhea, Liarreah
From Forbes, we have Greg Levine writing on Realtors' Lereah Blames Inventories For Price Sloth.
He's the chief economist at the National Association of Realtors (NAR), which reported Tuesday that sales of existing homes and condominiums slid 1.3% last month, to a seasonally adjusted annual rate of 6.62 million units.
Lereah in January assured that, rather than a bubble-pop and consequent recession, the housing arena is coming in for a "soft landing." One hopes this leveling-off will indeed be gradual, as the slowdown is definitely happening:
I blame the sun for warm weather. I also blame the rain for wet pavements. I blame.... you get the idea!
Also, can anyone say "conflict of interest"?
This man is not an economist, he's a paid shill for the NAR. No matter which way things go, he's paid to spin the bullshit.
He said urban sales are going downhill in New York City, Boston, Chicago and Minneapolis; while growing markets can be found in Syracuse and Pittsburgh.
Syracuse? Pittsburgh?
Totally "have been" industrial towns where even the last remnant of industry has been offshored?
Where are the wages that cause rising prices going to come from?
Spin away, spinmeister!
Sooner or later, the blowjobs you're giving journalists are gonna give you the clap, and when the winds turn, try not to beshit yourself when the lies you've told come back as lawsuits.
He's the chief economist at the National Association of Realtors (NAR), which reported Tuesday that sales of existing homes and condominiums slid 1.3% last month, to a seasonally adjusted annual rate of 6.62 million units.
Lereah in January assured that, rather than a bubble-pop and consequent recession, the housing arena is coming in for a "soft landing." One hopes this leveling-off will indeed be gradual, as the slowdown is definitely happening:
I blame the sun for warm weather. I also blame the rain for wet pavements. I blame.... you get the idea!
Also, can anyone say "conflict of interest"?
This man is not an economist, he's a paid shill for the NAR. No matter which way things go, he's paid to spin the bullshit.
He said urban sales are going downhill in New York City, Boston, Chicago and Minneapolis; while growing markets can be found in Syracuse and Pittsburgh.
Syracuse? Pittsburgh?
Totally "have been" industrial towns where even the last remnant of industry has been offshored?
Where are the wages that cause rising prices going to come from?
Spin away, spinmeister!
Sooner or later, the blowjobs you're giving journalists are gonna give you the clap, and when the winds turn, try not to beshit yourself when the lies you've told come back as lawsuits.
Menda-city
From the Wall Street Journal, we have James R. Hagerty writing about Rising Inventories Weigh on Home Prices.
He provides a graph of: Percentage of listed homes whose prices have been reduced as of 8/2/2006.
In a more positive sign for home sellers, the National Association of Realtors' index of pending home sales in June was up 0.4% from May.
I want to know what exactly is so positive about the above graph. And wouldn't you think the NAR would be just a tad bit biased? Besides, what does the national index have to do with local sales?
Also, note the conspicuous absence of New York in the above graph.
It doesn't matter which way they spin it. New York is having the same "softening". He also fails to mention that there are 14,000 new condos coming on the market in New York. That just screams "MELTDOWN!"
The lesson to take away from the "journalist" seems to be, "Don't pee in the pot that feeds you."
He provides a graph of: Percentage of listed homes whose prices have been reduced as of 8/2/2006.
In a more positive sign for home sellers, the National Association of Realtors' index of pending home sales in June was up 0.4% from May.
I want to know what exactly is so positive about the above graph. And wouldn't you think the NAR would be just a tad bit biased? Besides, what does the national index have to do with local sales?
Also, note the conspicuous absence of New York in the above graph.
It doesn't matter which way they spin it. New York is having the same "softening". He also fails to mention that there are 14,000 new condos coming on the market in New York. That just screams "MELTDOWN!"
The lesson to take away from the "journalist" seems to be, "Don't pee in the pot that feeds you."
Tuesday, August 15, 2006
Denial ain't just a river in Egypt
From KETV.com in Omaha, we have some staff reporter writing about Housing Market Advantage Belongs To Buyers.
"In my 26 years, I've never seen this many homes for sale (in) this market," said Omaha real estate agent Van Deeb.
Deeb said he doesn't, however, believe that Omaha's housing bubble is bursting, unlike the markets in some other cities including Phoenix and Las Vegas.
Yep, he's never seen so many houses for sale in 26 years, but prices won't fall.
There, in them funny places, like Phoenix and Las Vegas, they may fall, but right here, where he earns his bread and butter, they won't fall.
Who's coming to the rescue?
The Tooth Fairy? The Easter bunny? Santa Claus?
As the title says...
"In my 26 years, I've never seen this many homes for sale (in) this market," said Omaha real estate agent Van Deeb.
Deeb said he doesn't, however, believe that Omaha's housing bubble is bursting, unlike the markets in some other cities including Phoenix and Las Vegas.
Yep, he's never seen so many houses for sale in 26 years, but prices won't fall.
There, in them funny places, like Phoenix and Las Vegas, they may fall, but right here, where he earns his bread and butter, they won't fall.
Who's coming to the rescue?
The Tooth Fairy? The Easter bunny? Santa Claus?
As the title says...
Fat Farm
From CNN Video, we have Condos Come with Extras.
For anyone who doesn't want to watch the video (I was bored to tears!), let me give you the run down.
This is about a couple whose condo has been on the market for over a year with no offers.
(Smart economists should figure out what's wrong from just this one statement.)
The're offering a pair of round-trip airline tickets, and they "may also throw in a $1,000 bottle of wine."
Also interviewed is a realtor who says that his clients are using "creative gimmicks" like offers of a Vespa scooter, a month of massages, and a personal chef.
The obvious flaw?
If something doesn't sell, the price is wrong. It is that simple. Everything sells if you lower the price enough.
Two, offering an incentive is the same as lowering the price. So why not just lower the price?
Well, there are two possible reasons here. The sellers have an "emotional attachment" to the price, and the realtors have it in their interest to have a higher price so that they get a higher commission off of it. (Why the sellers are so blind to this obvious thing is mysterious to me!)
Thirdly, by offering an incentive, you actually lower the number of potential buyers.
Why?
Because the sellers are now creating a double-incidence of wants i.e. you have to find a buyer who wants the house, and the Vespa scooter, or the house, and the $1,000 bottle of wine, etc.
Fourthly, since the vast majority of people are buying houses on credit, at 6.5% interest, you pay roughly $1,275 in interest payments i.e. you are paying $2,275 for a $1,000 bottle of wine.
Not to mention that you now pay insurance, and property taxes [sic] on a bottle of wine!
That's one hefty chiquita!
For anyone who doesn't want to watch the video (I was bored to tears!), let me give you the run down.
This is about a couple whose condo has been on the market for over a year with no offers.
(Smart economists should figure out what's wrong from just this one statement.)
The're offering a pair of round-trip airline tickets, and they "may also throw in a $1,000 bottle of wine."
Also interviewed is a realtor who says that his clients are using "creative gimmicks" like offers of a Vespa scooter, a month of massages, and a personal chef.
The obvious flaw?
If something doesn't sell, the price is wrong. It is that simple. Everything sells if you lower the price enough.
Two, offering an incentive is the same as lowering the price. So why not just lower the price?
Well, there are two possible reasons here. The sellers have an "emotional attachment" to the price, and the realtors have it in their interest to have a higher price so that they get a higher commission off of it. (Why the sellers are so blind to this obvious thing is mysterious to me!)
Thirdly, by offering an incentive, you actually lower the number of potential buyers.
Why?
Because the sellers are now creating a double-incidence of wants i.e. you have to find a buyer who wants the house, and the Vespa scooter, or the house, and the $1,000 bottle of wine, etc.
Fourthly, since the vast majority of people are buying houses on credit, at 6.5% interest, you pay roughly $1,275 in interest payments i.e. you are paying $2,275 for a $1,000 bottle of wine.
Not to mention that you now pay insurance, and property taxes [sic] on a bottle of wine!
That's one hefty chiquita!
Monday, August 14, 2006
Funny Money
From the USA Today, we have Dennis Cauchon writing on What is the real federal deficit?
The Bush administration opposes including Social Security and Medicare in the audited deficit. Its reason: Congress can cancel or cut the retirement programs at any time, so they should not be considered a government liability for accounting purposes.
Should I just not count my bills for next month as liability because I could just skip town theoretically? Or because I could commit suicide anytime I wanted?
Happy, happy, skippy, skippy!
Nobody has any liabilities any more. We all live in a fairy-tale universe where trees grow to the sky.
The Bush administration opposes including Social Security and Medicare in the audited deficit. Its reason: Congress can cancel or cut the retirement programs at any time, so they should not be considered a government liability for accounting purposes.
Should I just not count my bills for next month as liability because I could just skip town theoretically? Or because I could commit suicide anytime I wanted?
Happy, happy, skippy, skippy!
Nobody has any liabilities any more. We all live in a fairy-tale universe where trees grow to the sky.
Friday, August 11, 2006
Sweet Suffering Supply
From the North County Times, we have Dave Downey, a "staff writer" (a.k.a. "male homeworker") writing about real estate: Home sales plunge 31 percent in July.
The median condo price fell 10 percent year over year to $359,000 in July, the report stated.
But Kevin Burke, a Del Mar real estate agent, suggested the condo numbers were misleading.
"That just means we flooded the market with condo conversions. That doesn't mean the market has come down," Burke said.
Hmmm... The market is "flooded" with condos. Lots of supply, not a whole lot of demand, prices have already fallen but that doesn't mean "the market has come down".
Halleluia, brother, and pass the bong!
The median condo price fell 10 percent year over year to $359,000 in July, the report stated.
But Kevin Burke, a Del Mar real estate agent, suggested the condo numbers were misleading.
"That just means we flooded the market with condo conversions. That doesn't mean the market has come down," Burke said.
Hmmm... The market is "flooded" with condos. Lots of supply, not a whole lot of demand, prices have already fallen but that doesn't mean "the market has come down".
Halleluia, brother, and pass the bong!
Thursday, August 10, 2006
Perpetual Motion Machine
This is a blast from the past, but it needs to be immortalized on the Blogosphere.
We've met this dumb bitch before, Motoko Rich. She writes for a "once great" newspaper which goes through the motions of pretending to be intelligent these days.
From a tad over a year ago, we have: Trading Places: Real Estate Instead of Dot-Coms.
In Miami, Ron Shuffield, president of Esslinger-Wooten-Maxwell Realtors, predicted that a limited supply of land coupled with demand from baby boomers and foreigners would prolong the boom indefinitely.
"South Florida," he said, "is working off of a totally new economic model than any of us have ever experienced in the past."
What model is that? The "crash and burn a year later" model?
We've met this dumb bitch before, Motoko Rich. She writes for a "once great" newspaper which goes through the motions of pretending to be intelligent these days.
From a tad over a year ago, we have: Trading Places: Real Estate Instead of Dot-Coms.
In Miami, Ron Shuffield, president of Esslinger-Wooten-Maxwell Realtors, predicted that a limited supply of land coupled with demand from baby boomers and foreigners would prolong the boom indefinitely.
"South Florida," he said, "is working off of a totally new economic model than any of us have ever experienced in the past."
What model is that? The "crash and burn a year later" model?
Wednesday, August 02, 2006
The blog's mandate
Referring back to the first post, the blog's mandate is "to point out economic stupidity in the press."
Well, just to make it really clear, there are two kinds of economic stupidities.
One is where the journalist is merely reporting stupid things that people do.
The second is where the journalist actively says economically stupid things.
I have deliberately chosen to collapse the two because it is my belief that journalists should not merely report things but analyze them too. As in, if they do not provide a coherent analysis, they are lying, and hence must be exposed as either being stupid, or fraudulently manipulative.
I am perfectly aware that this definition of "journalism" is not in vogue currently but I'm willing to buck the trend.
Well, just to make it really clear, there are two kinds of economic stupidities.
One is where the journalist is merely reporting stupid things that people do.
The second is where the journalist actively says economically stupid things.
I have deliberately chosen to collapse the two because it is my belief that journalists should not merely report things but analyze them too. As in, if they do not provide a coherent analysis, they are lying, and hence must be exposed as either being stupid, or fraudulently manipulative.
I am perfectly aware that this definition of "journalism" is not in vogue currently but I'm willing to buck the trend.
Tuesday, August 01, 2006
That sinking feeling...
From the Twin Cities Pioneer Press, we have Laura Yuen reporting on Some Houseboat!.
I'll give you the high points:
Why not build a..floating retirement community, that could treat its residents to nautical adventures similar to his own? The St. Paul native has finally translated that dream into the most unusual condominium proposal the city has ever seen. His River Cities concept is a cross between a river barge and a four-level, 200-unit cruise ship.
Condo buyers would tour Nelson’s favorite haunts, from the sand bars of Destin, Fla., to the riverfront parks in Memphis, without ever leaving home.
His concept has also raised questions about property taxes, docking rights and the size and scale of each boat, Nelson envisions them the length of five football fields, making them the largest passenger vessels on the Mississippi River. ‘I talk to a lot of people, and they say, ‘Wow, what a cool idea,’ said Nelson. ‘But whether it actually grabs people enough that they’ll say, ‘Yeah, I want to buy,’ that’s always the key.’
Nelson’s prices range from $275,000 to $474,000 for units that go from 528 to 924 square feet. He said he designed his model, comprising four adjoining barges, to appeal to buyers who lack the means to own a private yacht. ‘I’ve got prices on this thing where middle-class people can participate in a millionaire’s dream,’ he said.
‘What’s unique about this is that these people will have a sense of ownership of the entire Mississippi River that few other people would,’ said Patrick Seeb, head of the St. Paul Riverfront Corp. ‘These projects are never easy,’ he said, referring to ambitious riverfront proposals that include the Bridges, which Seeb has criticized. ‘You have to hand it to people for being creative and trying to find ideas unique in the marketplace.’
Let's start with the obvious flaw. Middle-class people CANNOT participate in a millionaire's dream, by definition, because they are not fucking millionaires.
Is this a hard concept? It shouldn't be.
Secondly, no millionaire would be retarded enough to buy a depreciating asset for this absurd price.
Thirdly, I want to know which millionaire dreams about living on a 528 sq. feet unit on a barge on the Mississippi, and pay $600 a month for that privilege (on top of actually paying the absurd purchase price.)
Hell, if I were to live out my Huck Finn dream, I'd do it right -- footloose, and fancy free, and make sure to sucker more than a few folks on the drift down.
Lastly, if someone had 400K+, they could easily buy a 100K yacht, sail up and down the Mississippi (or wherever their heart's pleasure chose), put the remaining 300K in a bank account, and the interest would pay for all of the maintenance of the boat annually.
I rest my case.
I'll give you the high points:
Why not build a..floating retirement community, that could treat its residents to nautical adventures similar to his own? The St. Paul native has finally translated that dream into the most unusual condominium proposal the city has ever seen. His River Cities concept is a cross between a river barge and a four-level, 200-unit cruise ship.
Condo buyers would tour Nelson’s favorite haunts, from the sand bars of Destin, Fla., to the riverfront parks in Memphis, without ever leaving home.
His concept has also raised questions about property taxes, docking rights and the size and scale of each boat, Nelson envisions them the length of five football fields, making them the largest passenger vessels on the Mississippi River. ‘I talk to a lot of people, and they say, ‘Wow, what a cool idea,’ said Nelson. ‘But whether it actually grabs people enough that they’ll say, ‘Yeah, I want to buy,’ that’s always the key.’
Nelson’s prices range from $275,000 to $474,000 for units that go from 528 to 924 square feet. He said he designed his model, comprising four adjoining barges, to appeal to buyers who lack the means to own a private yacht. ‘I’ve got prices on this thing where middle-class people can participate in a millionaire’s dream,’ he said.
‘What’s unique about this is that these people will have a sense of ownership of the entire Mississippi River that few other people would,’ said Patrick Seeb, head of the St. Paul Riverfront Corp. ‘These projects are never easy,’ he said, referring to ambitious riverfront proposals that include the Bridges, which Seeb has criticized. ‘You have to hand it to people for being creative and trying to find ideas unique in the marketplace.’
Let's start with the obvious flaw. Middle-class people CANNOT participate in a millionaire's dream, by definition, because they are not fucking millionaires.
Is this a hard concept? It shouldn't be.
Secondly, no millionaire would be retarded enough to buy a depreciating asset for this absurd price.
Thirdly, I want to know which millionaire dreams about living on a 528 sq. feet unit on a barge on the Mississippi, and pay $600 a month for that privilege (on top of actually paying the absurd purchase price.)
Hell, if I were to live out my Huck Finn dream, I'd do it right -- footloose, and fancy free, and make sure to sucker more than a few folks on the drift down.
Lastly, if someone had 400K+, they could easily buy a 100K yacht, sail up and down the Mississippi (or wherever their heart's pleasure chose), put the remaining 300K in a bank account, and the interest would pay for all of the maintenance of the boat annually.
I rest my case.
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