October 6, 2017

There Aren’t Enough Buyers Paying Ridiculous Prices

It’s Friday desk clearing time for this blogger. “A new twist on Bravo’s successful ‘Million Dollar Listing’ franchise, ‘Real Estate Wars’ ratchets up the heat on professional rivalries. The show capitalizes on the real-life bad blood between two aggressive agents, John McMonigle and Jojo Romeo, who once worked together. Jojo Romeo, with three ex-husbands and five children, wears tight dresses and belies her 49 years. McMonigle’s storyline, along with his history of over-the-top properties, could eat up a whole episode.”

“He filed for Chapter 7 bankruptcy in 2011 as part of a series of setbacks that began when a lender cut off funds for a mansion he was involved in developing. Known at the time as Villa del Lago, it was once priced by McMonigle as high as $87 million. After price cuts, and under the auspices of another agent, it sold, unfinished, for $18.5 million. Since the housing downturn, McMonigle, 52, has risen from the ruins. He’s represented a Coto de Caza estate with a private lake and a pirate ship in the swimming pool. He keeps as a pocket listing a Pelican Crest mansion with a stripper pole on a stage in the home theater. And he’s newly married to a younger agent, Hannah McMonigle.”

“In one scene, he takes his bride-to-be to see a waterfront fixer-upper on Lido Isle that he’d like to buy. It’s priced at just under $5 million. She looks reluctant, but he persuades her it’s the right move for them and she appears to come around. ‘In real estate, it’s all about the spin,’ John McMonigle says into the camera. ‘You want to help your clients fall in love with the property, even if it’s not ideal.’”

“Local real estate agents talk about houses selling so quickly they do not appear on the Multiple Listing Service, and some who have worked in Waco for decades say they’ve never seen demand quite so high. Trammell Kelly, a residential sales specialist with Kelly Realtors, said the appreciation of home values locally is unprecedented. ‘Is the market cooling at all? If you had asked me that a month ago, I would have said it is cooling a bit. But then in the last couple of weeks, it has not. I put properties up for sale that sold within 24 to 48 hours. I’m seeing a lot of homes priced at $200,000 to $400,000 move very quickly.’”

“There was good news and more good news for home buyers for the Southwest Michigan housing market in August. The region produced its most homes sold so far in 2017, while the average price dropped significantly – compared to July. ‘After four months of selling prices holding fairly steady, the average and median selling prices dropped,’ said Alan Jeffries, association executive of the Southwestern Michigan Association of Realtors. ‘The average selling price in August fell 12 percent from July and the median selling price slipped 3 percent.’”

“The Pinellas County Commission is trying to convince voters to renew the 1-cent Penny for Pinellas sales tax for another decade. So this news comes at an inconvenient time: The commission recently decided to sell off a piece of land at a loss of $1.7 million — money that was raised by the penny sales tax. The commission voted 6-1 on Sept. 26 to sell land in Indian Rocks Beach on Gulf Boulevard for $1.1 million. But it paid $2.8 million for the parcel in 2006, at the height of the real estate boom.”

“With just one bidder, Commissioner John Morroni said the county should sell the property to recoup whatever it can and stop paying $3,800 a year to maintain the land. ‘I would not take a chance on waiting,’ he said before the vote.”

“The number of first-time foreclosures in the five boroughs reached 859 during the third quarter of the year, part of a dramatic increase to levels last seen at the start of the Great Recession, according to a report from PropertyShark. The third-quarter foreclosure count was 79% higher than the same period last year, though certain areas of the city saw even more dramatic increases. In the Bronx, first-time foreclosures were up 145% compared to the year prior. In Brooklyn, they rose 112%.”

“The overall numbers bottomed out in 2013, they have since begun to rise—a trajectory last seen in 2006. Foreclosures tend to peak earlier in the year, and the second quarter this year was one instance shy of matching the previous peak in 2009, when there were 912 foreclosures in April, May and June.”

“How quickly things change for Toronto’s housing market. At the start of the year, prices were rising by more than 30 percent annually. But as was seen in Vancouver, eventually the market wobbles under its own weight. It gets to a point where there aren’t enough buyers capable of paying ridiculous prices. Bloomberg’s Nanos Canadian Confidence Index fell to the lowest level since mid-July. Optimism about home prices rising is becoming harder to find.”

“‘I’m not a pure optimist, but by the same token I’m not an alarmist because people have been calling the end of this market for the last three years,’ said Brad Henderson, president and CEO of Sotheby’s International Realty Canada. ‘It really comes down to the psychology of the market and the comfort that people have in the future.’”

“Israel’s economy is strong enough to weather a steep drop in housing prices, according to the prime minister’s top economic adviser, a view at odds with central bank warnings. With a decade-old housing boom appearing to wind down, Avi Simhon, who heads the National Economic Council, said banks can withstand a 25 percent decline in home prices without any major problems. He added that because the typical value of a loan is low relative to property prices, even a 50 percent plunge, a level typically seen as catastrophic for an economy, wouldn’t destabilize the banking system.”

“‘Unlike in the USA, you can’t just tell a bank to take your house,’ Simhon said. ‘So it’s hard to see a housing slump leading to major problems for banks.’ If a major recession does come, he added, ‘then we’d have problems regardless of what happens with the housing industry.’”

“Despite the economic growth, Malaysia’s commercial and housing property market continues to face a glut, said Second Finance Minister Datuk Seri Johari Abdul Ghani. Johari said the increase in housing prices in the country has overtaken the rise in income, since 2012. ‘In the first quarter of 2017 about 130,000 unsold units of high-end properties are actually above RM250,000. These high-end units are considered to be affordable only to 58 per cent of households in Malaysia,’ he said.”

“He added that the oversupply of higher-end properties are the main reason the country is seeing a significant portion of properties remaining unsold. Compared to the first quarter in 2012, he said, only 54,000 units were unsold and from the number 19,500 higher-end properties were affected. ‘As you see today, 108,000 of 130,000 high-end properties are unsold. This is an alarming situation. It is because four to five years ago, before we implemented policies, many high-end projects were taking place.’”

“Blaine Callard, CEO of Harvey Norman Ireland, recently made headlines when his Brisbane CBD sub penthouse sold for $400,000 less than he paid for it eight years ago. Callard had been asking for offers over $2m for the 216 square metre sub penthouse apartment in the upmarket Admiralty Towers, but only managed to fetch $1.85m. Records show he’d paid $2.25m for the investment property in 2009.”

“Callard’s investment isn’t the only example of a Brisbane apartment that was resold at a loss. Official property searches indicate that many off-the-plan apartment high-rises completed at the start of the boom have since been resold at considerable losses – as high as 35% in densely built areas such as Newstead, Bowen Hills, and Hamilton. Nearly a quarter of Brisbane apartments lost money in the first three months of the year, up from approximately 18% of sales making a loss in mid-2016.”

“Angie Zigomanis, senior manager at BIS Oxford Economics, said newer Brisbane units were expected to lose value in the short term. ‘Anyone who has bought off-the-plan now is unlikely to see a gain at all in the three years,’ he told The Australian. ‘Those losses are bigger when you take into account the stamp duty on the purchases as well. For a lot of purchasers it means their equity has dissipated.’”

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Comment by 2banana
2017-10-06 10:42:09

No huge losses…

And he sold a bunch right before the 2005 crash with good timing.


Details Emerge Of Las Vegas Shooter’s Real Estate Gambles
NPR | October 5, 2017 | by Les Cook

As more details emerge about the life of Stephen Paddock, one thing is clear: on paper, he does not appear to fit a typical profile of a mass shooter. The 64-year-old former accountant who carried out the deadly massacre in Las Vegas on Sunday night was a successful real estate investor who stayed in touch with family and took care of his mother. He was a gambler, but not a reckless one. It appears Paddock liked to have a strategy.

Over the past three decades, Paddock was involved in nearly a dozen real estate deals. At first, he invested in small apartment buildings, but gradually moved into upscale multi-million-dollar properties. He appeared to make money on most of these deals, but he wasn’t immune to losses.

Paddock appears to have started his real estate investments in November 1985 with the purchase of a modest house in Los Angeles on El Paso Drive. Two years later, with the help of his mother, he bought a small apartment building, also in Los Angeles for $725,000.

Apartment buildings became a collector’s item for Paddock in following years, with a property on Kornblum Avenue in southwest Los Angeles County and another on Doty Street in Hawthorne, Calif. He began to sell them off for profit in the early 2000s, with four sales in 2004 alone.

He may have been preparing for what would be his biggest deal, a multi-story apartment complex on the north side of Mesquite, Texas, not far from the municipal golf course. Paddock borrowed $3.5 million to buy the property and sold it eight years later for $4.6 million.

There were also single family home purchases along the way. A home in California City, Calif., was bought in 1995 for $57,000 and presumably flipped a year later for $89,000. A home Paddock bought in Mesquite, Texas, in 2004 was later transferred to his mother at a sales price of $159,375. She apparently lost money when she sold it in 2014 for $150,000.

When his mother wanted to move to Florida, Paddock bought a brand new home for her in Melbourne. At least, that’s what he told neighbor Don Judy. This one was another loss: purchased for $246,000 in 2013 and sold two years later for $235,000.

Comment by Professor Bear
2017-10-06 23:07:56

There is nothing at all comforting about this story. Too many details seem completely contrary to the life of a prototypical mass shooter.

Comment by trader jack
2017-10-06 23:55:19

IT kind of makes me think that the rest of the shooters failed to show up. I can not think of a reason why there were so many guns there, and two broken windows , unless there was supposed to be a team of shooters there to commit mayhem on the American people.
But , I could be wrong

Comment by redmondjp
2017-10-07 21:59:32

Go on Youtube and watch this audio editor analyze the audio recordings on the various cell phone videos - it’s pretty obvious that there are multiple shooters.

The bump-stock-fired weapon does not have a consistent timing between shots, but the full-auto guns (which this shooter did NOT have) do. You can clearly see the difference in his waveforms.

He even analyzes the taxi audio where you can clearly hear two different guns (one close, one far away), and talks about the echo from the first burst of close shots (and also about why the other sounds are not echoes).


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Comment by 2banana
2017-10-06 10:52:54

2banana’s Rule:

Long term democrat rule + public unions + free sh*t army = misery, ruin and bankruptcy


Migration Of The Tax Donkeys
Oct 6, 2017 - Zeroehedge

A Great Migration of the Tax Donkeys is underway, still very much under the radar of the mainstream media and conventional economists. If you are confident no such migration of those who pay the bulk of the taxes could ever occur, please consider the long-term ramifications of these two articles:

Allow me to summarize for those who aren’t too squeamish: a lot of cities and counties are going to go broke, slashing services and jacking up taxes, all to no avail. The promises made by corrupt politicos cannot possibly be kept, despite constant assurances to the contrary, and those expecting services and taxes to remain untouched will be shocked by the massive cuts in services and the equally massive tax increases that will be imposed in a misguided effort to “save” politically powerful constituencies and fiefdoms.

These dynamics will power a Great Migration of the Tax Donkeys from failing cities, counties and states to more frugal, well-managed and small business-friendly locales.

Not everyone can move. Many people find it essentially impossible to move due to family roots and obligations, poverty, secure employment, kids in school, and numerous other compelling reasons.

Memo to hubris-soaked politicos and elites: in case you haven’t noticed, an increasing number of the most talented and experienced workers can live anywhere they please and submit their output digitally. In other words, they don’t have to live in Brooklyn, Santa Monica or San Francisco.

Not that hubris-soaked politicos and elites have noticed, but only the top few percent of households can afford to own a home in their bubble economies. Paying $4,000 a month in rent for a one-bedroom cubbyhole in San Francisco may strike the elites living in mansions as a splendid deal, but to the people who have surrendered all hope of ever owning anything of their own to call home–not so much.

Dear local leadership: here’s the formula for long-term success: welcome talent from everywhere in the U.S. and the world; make it cheap and quick to open a business, and cheap to operate that business; make public spaces free, safe and well-maintained; insist on a transparent, responsive government obsessed with serving the public as frugally as possible; support a political class drawn from people with real-world enterprise experience, not professional politicos, lobbyists, etc., and treat incoming capital well–not just financial capital but intellectual, social and human capital. Focus on building collaboration between education and enterprise–foster apprenticeships not just in the trades but in every field of endeavor.

Comment by Ben Jones
2017-10-06 10:58:20

‘Jojo Romeo, with three ex-husbands and five children, wears tight dresses and belies her 49 years. McMonigle’s storyline, along with his history of over-the-top properties, could eat up a whole episode. He filed for Chapter 7 bankruptcy in 2011 as part of a series of setbacks that began when a lender cut off funds for a mansion he was involved in developing.’

Just how over the top do these TV shows have to get? Stripper poles?

Comment by 2banana
2017-10-06 11:08:16

My favorite “house” TV show was Holmes on Homes.

He would go and inspect a house that was recently purchased that had issues for the new buyers.

He showed them where they were ripped off, how the realtor lied to them and showed how a crooked contractor cut corners or worse.

He would go into great detail explaining the issues and how to fix them. And then fix them and explain that too.

A great learning experience.

So much different than today’s “Buy a house, do three weeks of renovations and get $50,000 in extra equity” TV shows…

Comment by oxide
2017-10-08 06:53:36

The original This Old House was pretty good too. I would prefer if the shows would spend more time on the renovation and a lot less time on the money aspect. However, they have to keep the “reveal.” Without the reveal, HGTV would go dark tomorrow.

Comment by BlueSkye
2017-10-06 21:45:41

“Stripper poles?”

Possibly not as scandalous as it seems. Was an exercise fad a while back. The lady of the house may have ordered it.

Comment by Professor Bear
2017-10-06 23:09:13

“Stripper poles?”

Don’t all $1+ million investment homes feature these?

Comment by Apartment 401
2017-10-06 11:09:44

Realtors are liars.

Comment by Mafia Blocks
2017-10-06 11:14:40

And every closing a crime scene.

Comment by 2banana
2017-10-06 12:00:46

Joshua/WOPR: Greetings, Professor Falken.

Stephen Falken: Hello, Joshua.

Joshua/WOPR: A strange game. The only winning move is not to play. How about a nice game of chess?

Comment by Ben Jones
2017-10-06 12:17:57

‘The number of first-time foreclosures in the five boroughs reached 859 during the third quarter of the year, part of a dramatic increase to levels last seen at the start of the Great Recession…they have since begun to rise—a trajectory last seen in 2006. Foreclosures tend to peak earlier in the year, and the second quarter this year was one instance shy of matching the previous peak in 2009, when there were 912 foreclosures in April, May and June’

One of the hottest markets in the world a couple of years ago. Now they have 2009 levels of defaults.

Comment by junior_kai
2017-10-06 12:33:08

Ground level reporting from Jim the Realtor in San Diego - sounds like the music is winding down there too.


Comment by Ben Jones
2017-10-06 12:45:11

“A big thud.”

Comment by Professor Bear
2017-10-06 23:10:34

Sounds like our landlords missed the boat on offloading their investment. Now they will have to wait at least another ten years for the next roll of the cycle.

Comment by BlueSkye
2017-10-07 10:36:42

OR….This was the most humungous sucker’s rally in history, thanks to the “China Miracle”. They won’t see the likes of it in 10 years or even in their lifetime. Nobody alive today will see such a thing again.

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Comment by palmetto
2017-10-07 11:16:55

“Nobody alive today will see such a thing again.”

That’s what I thought about bubble 1.0.

Comment by Professor 🐻
2017-10-07 14:42:17

“That’s what I thought about bubble 1.0.”

That’s what I thought before realizing that the Fed is fully committed to bubble creation and reflation…plus denial of their role.

Comment by BlueSkye
2017-10-07 18:07:04

Well then, we’re going to need another billion volunteers who want to rise up out of the dark ages to rule the world through borrowing. Can the Fed produce these? Most of the rest of us are exhausted.

Comment by GreenEggsAndSpam
2017-10-07 14:44:53

Big Thud is gonna be the name of my new band. We’re gonna play on the court house steps when they announce foreclosures. I’m working on tweaking the lyrics to this song but the intro words will stay the same:

Comment by Professor 🐻
2017-10-07 09:46:55

One thing that is obvious along my daily commute route: The race is underway to build out and offload the latest massive chunk of new tract homes on unsuspecting future FBs before the onset of the next recession.

Comment by BlackSwanDive
2017-10-07 19:00:44

A number of west coast markets are seeing large declines MOM in pricing, though REALTWHORES are touting YOY price gains, while whistling past the graveyard.

Comment by Contrarian
2017-10-06 13:58:20

Longtime lurker (I go back to the days of Bye Fl, Olygal [RIP], and Aladinsane - not to mention Sean Sneed and Marina Peed. And where are Exeter, Polly, Dimedropped, and Muggy?) who has returned gratefully after a long absence to the very best forum on the internet. It’s because of the knowledge I gained here over several years of lurking that today I am financially independent instead of living paycheck to paycheck - so thanks everyone, I owe you a lot. The Friday Night Desk Clearing threads were always my favorite, and I’m hoping today you can provide some additional guidance.

I’m a female expat who will soon retire and is looking to return home to the US to become a homeowner but I’m scared about the practicalities of home maintenance. Where do I start to learn the kindergarten-level basics - enough so that I am not 100% clueless in dealing with tradesmen?

How do females who aren’t handy - or the small number of men for that matter who aren’t (there are a few of these, such as a lawyer I knew who could plug in a stero but that’s about it) - solve this conundrum? Books? Videos? Classes? Is a condo my only option even though I would really like a small storybook cottage? It feels overwhelming. Thank you in advance.

Comment by taxpayers
2017-10-06 15:18:17

if I didn’t use illegals and cash only contractors I’d lose my azz

Comment by BlueSkye
2017-10-06 15:34:33

youtube might help.

Comment by SallySD
2017-10-06 16:39:19

Dang, I sure miss all those people you named. Olygal in particular…Smart, kind and thoughtful, with personality and flair. And compassion. I still enjoy reading the articles Ben posts….

Comment by 2banana
2017-10-06 19:48:59

My local community college offers all kinds of non credit classes to include home repair. I took a homeowner electrical class. Excellent and hands on.

This one class has saved me thousands.

Comment by Ol'Bubba
2017-10-07 07:18:34

The big box home improvement stores around me offer Saturday morning how-to demonstrations on some basic homeowner projects, for example, how to replace a faucet, install a ceiling fan, etc.

Often times I’ll check out you tube when I have a project. A few years back I was able to fix a refrigerator by using a multi-meter to diagnose the problem and fix it with a $30 part. In the absence of the youtube video it would have been a much more expensive proposition.

Comment by ibbots
2017-10-07 08:17:20

Yeah, community college or adult education of the local uni would be a good place for basic electric / plumbing, etc.

Youtube videos have been really helpful for me also. I had to replace a thingamajig in a bath tub faucet. Youtube had a video for the exact make and model. Shoot, I didn’t even need the written instructions after watching a 5 minute video!

Comment by Mafia Blocks
2017-10-07 08:46:23

Better yet rent it for half the monthly cost. Buy later after prices crater for 75% less.

Comment by BlueSkye
2017-10-07 10:39:02

Wise advice, but even a renter can learn some useful skills.

Comment by Mafia Blocks
2017-10-07 11:40:08

Quite true. Properly specified materials and vendor instructions for material installation are the fundamental first step for EFS, IFS, mechanical and E work. Structural, mech and E rough-in requires expertise.

In the end, it’s far less costly to rent it for 50% less. Buy later for 75% less.

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Comment by oxide
2017-10-07 13:58:56

Go to the used bookstore and pick up the all-purpose Home Repair books. The magazine companies like Time, Sunset, Ortho, Better homes and Gardens etc put out a ton of them in the 70s-90s. They are $2-3 each.

If you do buy a house, get a membership to Angie’s List. Many of the local contractors have coupons for initial inspections or consultations for $70-80 each. They will be happy to give you advice. Also, read the reviews.

Or if you want a little fun, simply go to Home Depot and Lowe’s and walk up and down every single aisle to see what kind of products are there.

Comment by Mafia Blocks
2017-10-07 14:06:46


Comment by Professor 🐻
2017-10-07 14:45:51

Or don’t buy a house and let your landlord enjoy the pleasure of investing their time and money in maintaining the value of their investment while you enjoy your weekends.

Comment by oxide
2017-10-07 18:27:02

Your arguments don’t apply to a retired person, bear. This pending retiree doesn’t have to preserve her weekends, because every day is a weekday. The retiree probably doesn’t care about her “investment” since she’s already cashed out the equity in previous houses and has money saved in other investments.

Actually it sounds like Contrarian would do best in an 55+ development of small patio homes. You have a tiny yard and garden but also a maintenance crew. Maybe that will work.

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Comment by oxide
2017-10-07 18:57:58

D’oh. I mean every day is a weekend.

Comment by Professor 🐻
2017-10-07 22:31:45

I wasn’t arguing. Just pointed out one of the clear advantages of renting.

But if you enjoy spending your weekends on trips to Home Depot and reading used copies of all-purpose home repair books, then I am certainly not going to question your choice of self-entertainment. As for myself, I am enjoying the new guitar that I bought with money saved by paying a lower rent than PITI for comparable property.

Comment by oxide
2017-10-08 08:01:49

In case you didn’t get the memo, this thread isn’t about me, much as you may want it to be. This is about someone *else.*

Comment by BlueSkye
2017-10-07 18:11:35

My GF usually pretends ignorance and helplessness. Often it is effective.

Comment by OneAgainstMany
2017-10-07 20:33:44

I find myself in this predicament. Might I suggest finding a reliable handyman (licensed, bonded, and insured).

Comment by rms
2017-10-08 03:31:43

“…(licensed, bonded, and insured)…”

You have to work “full time” to support these expenses, which have been gamed-up beyond the reach of a father-n-son business. These financial services companies are responsible for killing-off sole proprietorship in this country, and the SBA just sat back and let it happen.

Comment by Prime_Is_Contained
2017-10-08 11:22:53

First, welcome back Contrarian; was that always your handle—because I’m not placing you from that era…

It’s because of the knowledge I gained here over several years of lurking that today I am financially independent instead of living paycheck to paycheck - so thanks everyone, I owe you a lot.

Do you mind sharing how you went from paycheck-to-paycheck to financially independent over the last decade?

Comment by Taxpayers
2017-10-06 14:13:58

The Versailles Florida house is in the news=peak

Comment by Senior Housing Analyst
2017-10-06 14:55:50

Irvine, CA Housing Prices Crater 11% YOY


Comment by Lesser Fool
2017-10-06 15:01:50

For a lot of purchasers it means their equity has dissipated.

Is that better than if it had disappeared?

Comment by BlueSkye
2017-10-06 15:30:35

“Pinellas County…1-cent Penny for Pinellas sales tax for another decade.”

They raised a tax so that the city council could gamble the money in the casino?

“at a loss of $1.7 million — money that was raised by the penny sales tax. The commission voted 6-1 on Sept. 26 to sell land…With just one bidder”

It’s a jail sentence waiting to happen.

Comment by taxpayers
2017-10-06 15:38:35

in va dems raised sales tax 33% for the chillens

Comment by Ol'Bubba
2017-10-07 17:05:58

I lived in Pinellas County for a little over 10 years. The “Penny for Pinellas” never bothered me as funding for government services and capital spending has to come from somewhere. Tourism is a big part of that county’s economy, so a good chunk of money was raised from snowbirds and vacationers.


Comment by Professor Bear
2017-10-06 23:04:49

“The number of first-time foreclosures in the five boroughs reached 859 during the third quarter of the year, part of a dramatic increase to levels last seen at the start of the Great Recession, according to a report from PropertyShark.”

Not to worry. The Fed stands ready with more QE to prevent a replay of the Great Recession.

“The overall numbers bottomed out in 2013, they have since begun to rise—a trajectory last seen in 2006.”

Not to worry, as personal bailouts await those facing foreclosure.

Comment by azdude
2017-10-07 05:15:53

the balance sheet is unlimited, infinite.

Everyone has a balance sheet riddled with debt. The FED, the treasury, consumers.Creating credit out of thin air has caused a sh@tload of demand to be pulled forward.

You must quickly forgive the defaulters and extend more credit for the health of the economy.If you make these folks accountable it just slows down progress.

If there was sound money this would not occur.

Comment by rms
2017-10-07 09:46:22

“If you make these folks accountable it just slows down progress.”

Phuc ‘em… and their creditors too.

Comment by MWR
2017-10-07 06:23:22

Brad Henderson, president and CEO of Sotheby’s International Realty Canada. ‘It really comes down to the psychology of the market and the comfort that people have in the future.’”

This is the whole problem. It should be about do I want to live here not about the market psychology.

Comment by jeff
2017-10-07 09:00:53

Pour me something tall and strong.
Make it a hurricane, before I go insane.
It’s only half past twelve. But I don’t care,
they’re foreclosing somewhere.

I could pay off my tab, pour myself in a cab,
and be back to work before two.
At a moment like this, I can’t help but wonder,
what would Ben Jones do?

[Ben Jones:]
Funny you should ask Apartment 401, I’d say…
Pour me something tall and strong.
Make it a hurricane, before I go insane.
It’s only half past twelve, but I don’t care.

What time zone am I on? What country am I in?
It doesn’t matter, they’re foreclosing somewhere.


Comment by Professor Bear
2017-10-07 10:53:22

Fishing with a guitar? Brilliant idea, though I wouldn’t use my Gibson or Taylor instruments for such purposes…

Comment by clark
2017-10-07 22:55:31

RE: ‘I wouldn’t use my Gibson or Taylor instruments for such purposes…’

Why not, they’re just pieces of wood and string, same as any bank fishing didy pole.

That said, I often think of your choice to save, by purchasing those tools. Congrats, for making a fine choice. So far. I see how their value has gone up compared to other stuff.

Let’’s just see how long it works though. Have you read any of the stuff Daisy Luther has posted on her website about the value of stuff and Dollars and water in P.R., when shtf?

I see how J.R. Rawles has recommended old cars. Those things are coming out of the woodwork, lately, it seems. I imagine, as those who appreciate them grow old and die off, their value plummets. I imagine it’s the same with non-digital musical instruments.

Just some food for thought. I appreciate both cars and fine instruments. I imagine your reach to go all-in on stocks, is the best ever, ’cause I think it’s the worst ever.
My rich uncle is doing pretty well, doing the same, going-all-out, like you want to.

I’m sure I’m doing the worst thing ever by being out of the stock market. Same as by not being a debt donkey and drowning with the crowd. …But, they make it look so fun, jumping off the cliff. Surely, it’s the right thing to do ’cause they are making a Lot of money doing so. …Don’t you want to make a Lot of money, too?

Que, Mr. Banker and the dark side.

Comment by azdude
2017-10-07 15:48:42

did u guys see the sh@t show of a jobs report for september? loss of 33,000 jobs and stocks go up? How stupid has this bs gotten?

Comment by In Colorado
2017-10-07 17:07:42

“Only two things are infinite, the universe and human stupidity, and I’m not sure about the former.”

Albert Einstein

Comment by jeff
2017-10-07 20:46:01

“if you had a law which said that healthy people are going to pay in — you made explicit healthy people pay in and sick people get money, it would not have passed… Lack of transparency is a huge political advantage. And basically, call it the stupidity of the American voter or whatever, but basically that was really really critical for the thing to pass”

Jonathan Gruber

Comment by clark
2017-10-07 23:09:31

That Jonathan Gruber bit is really disturbing, Jeff.

And, it’s so danged true. Try as I might to educate those around me. Psft. The worse thing tho, reflected in that last sentence, is how terrible those are who passed the thing, and so very many such awful bits of legislation like it.

What’s the definition of statesman?

Yah, anarcho-capitalism, gets my vote.

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Comment by redmondjp
2017-10-08 00:00:35

Leading to the new verb: ‘grubered’.

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Comment by oxide
2017-10-08 09:10:02

“healthy people pay in and sick people get money”

That’s sounds exactly like Medicare. So why did Medicare pass? Because the healthy knew that one day, they would be sick too. So I guess people were more intelligent in the 1960s?

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Comment by Professor 🐻
2017-10-07 22:35:05

It was the hurricanes that caused the job loss. Never mind all those other hurricanes over the past five years when employment nonetheless went up like gangbusters.

Comment by Hi-Z
2017-10-08 09:13:33

Hurricane Harvey was first landfall hurricane since since Wilma in 2005, before financial collapse.

Comment by Mafia Blocks
2017-10-07 19:21:42

Coppell, TX Housing Prices Crater 5% YOY


Comment by Professor 🐻
2017-10-07 22:24:50

How is a die-hard 🐻 supposed to invest when everything is not only overpriced, but also perpetually rising at an ever-increasing rate?

Luckily interest rate normalization is on the way. Or so we’ve been told…again and again and again.

Asset prices
The bubble without any fizz
Low interest rates have made more or less all investments expensive
Print edition | Briefing
Oct 7th 2017

USUALLY, when asset prices boom, people get excited. As America’s stockmarkets scaled wild peaks in 1929 and 1999 they did so amid feverish enthusiasm. Search for such euphoria on Wall Street today and you will come back empty-handed. Look at underlying numbers, though, and it is at first hard to see why. Over the past 136 years the cyclically adjusted price-earnings ratio (CAPE), a useful measure of how expensive stocks have become, has reached its current heights only twice before: during the dotcom bubble; and just before the Crash of ‘29.

Why does this remarkable surge not spur frantic enthusiasm—or for that matter deep trepidation? One reason is that in most market bubbles you can point to a particular type of asset which is seeing its price rise inexorably: tech stocks in the 1990s; houses in the mid-2000s. Today, though, America and much of the rest of the world are amid a bull market in almost everything: stocks, bonds and property are all strikingly expensive compared to long-term averages, and getting more so. When everything is going up, things are less exciting, and perhaps less worrying.you

Comment by azdude
2017-10-08 04:20:33

your masters want to extend some more credit to u to buy stocks on margin!

Comment by jeff
2017-10-08 08:25:01

“While he usually manned the bass and handled backing vocals for the Eagles, he wrote and/or co-wrote songs on each of the group’s first five albums, most notably “Take It to the Limit,” the band’s first million-selling single, on One of These Nights. Other songs he wrote and sang lead on include “Try and Love Again”

Eagles - Try and Love Again


Pinned by Luis Herrera
11 months ago

No band collectively wrote music quite like The Eagles, I will go to my grave saying they are the greatest band ever, not 1 or 2 lead singers, they could all sing, all write all perform as solo artists or as a band

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