Bits Bucket And Craigslist Finds For June 7, 2007
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5% 10 year = 6.5 30 year mort
WEEEEEEEEE
deduct sub prime- tighten alt-A
and what’s left ?
The Titanic.
…and Larry Yun is conducting the band
When will the banks start paying better rates on CDs?
I’m not a CD buyer, and some on this site have mentioned that EverBank may be “stretched” (it is FDIC insured)…anyway, EverBank is offering 3-month CDs in Icelandic krona at a 12.0% interest rate (12.55% APY).
Beware currency risk when you invest in foreign CDs.
It doesn’t help you if you get 12.55% yield on your icelandic krona if the krona falls 20% vs the dollar.
Last year I had a friend (who recommended Everbank) who got slaughtered investing in the New Zealand dollar due to this.
Investing in foreign currencies can be a great hedge or a great investment, but you MUST understand that country well in order to do so. (one reason why a CD would return so much is BECAUSE there is downside currency risk)
YMMV
Agreed — about two years ago, a few posters here were recommending both Icelandic and New Zealand-currency CDs and the value of both tanked when their currencies dropped.
I don’t know about the Icelandic Krona, but any drop in the NZ$ would have been strictly temporary. It’s currently at its highest level against the US$ for decades.
“I don’t know about the Icelandic Krona, but any drop in the NZ$ would have been strictly temporary. It’s currently at its highest level against the US$ for decades. ”
sorry, I can’t comment on this… I am not a currency trader, I only know my friend lost pretty big on this bet.
And I’ve seen this same conversation from a LOT of people about the NZD Everbank issue on other Blogsites and Financial websites. (as well as the Mexican Peso, South African Rand, and even the Swiss Franc)
and a “temporary” currency drop can wipe you out.
I’m not saying the NZD is a bad bet, just that one must understand more than just the interest rate when investing in foreign currencies.
one must understand more than just the interest rate when investing in foreign currencies
Absolutely.
Even more so if taking on foreign currency debt. There was a HUGE scandal here in Australia about 20 years ago over a group of farmers/graziers who had been sold large “low interest” loans denominated in Swiss Francs so they could expand their operations. Then the AUS$ went down about 40% against the CHF over a period of 18 months or so, and the borrowers got absolutely wiped out.
I could actually imagine this becoming an issue in the US shortly if any enterprising lenders start offering drowning FB’s the “lifeline” of a super-low-rate refi denominated in something like yen.
LynxBank in South Florida offers mortgages in non-US currencies. Popular with the British down there.
http://southflorida.bizjournals.com/southflorida/stories/2006/08/21/story7.html
In Central/Eastern Europe, a mortgage in Swiss Francs or Euros is fairly common. There are ads/discussion threads in the UK about mortgages in foreign currencies.
looking from Euroland the foreign currencies look a bit different, but still … the NZ$ tanked against the Euro in 2006 and made a huge bounce in the last half year (for traders: currently at 63% fibo retracement level of last years drop against the euro); not a good time to invest heavily in NZ$. Those who purchased NZ$ half a year ago did very well but still … the moves up or down are 20-25% lately which is much bigger than the extra gain because of the higher rates in Kiwi savings accounts or CD’s. The Kiwi dollar profits hugely from the carrytrade and commodity boom, sooner or later this will start working in reverse …
To give you half an idea of how whacky the carry trade in Kiwi $’s is…
When we were there last year, there were stories of Japanese schoolgirls in Tokyo, investing in NZ$ CD’s, because of the yield.
Yikes!
They all fluctuate, no doubt; the Icelandic krona has done very well vs USD recently. To be buying foreign CD’s, one must believe that Bernanke is going to continue to sit on his thumbs and not raise rates here.
( = helicopter drops)
well, looking at US M3 growth (currently 14%) the helicopter drops are already happening … the trouble is similar things are happening in all the major currencies.
Warren Buffett is probably as good as anyone at this stuff. A few years ago he bought large amounts of about half a dozen foreign currencies. He now says he’s sold all but one of them. He won’t say which, but says it may surprise us, and it’s Asian. My guess is the yen, although it has an awful yield.
I am long the Yen, I went long about a month ago and I will continue to stay long the Yen. The carry trade will unwind and the Yen is the most undervalued liquid foreign currency.
Why I am short the dollar
When Capital Flows Uphill:
Emerging Markets as Creditors
“…Emerging currencies have already exhibited strong nominal appreciation. Chart 5 compares the performance of the euro and the Japanese yen to several large emerging market currencies since the end of 2003. Most major emerging currencies substantially outperformed the euro and yen during this period in nominal terms. Note that in most instances these figures understate the relative total return differential that an investor would have received through an investment in emerging currencies: because short-term interest rates in many emerging markets exceeded comparable developed country rates, many emerging currencies earned a higher interest rate carry than an investment in the euro or yen.
The continued sharp accumulation of foreign reserves suggests that appreciation pressures are likely to remain. This reserve growth is a signal that the demand for local currency by firms, individuals, and investors is not being satisfied by the private market at the current prices. And like the case of external debt, the feedback loop is positively reinforcing: as investors see currency appreciation potential, they invest progressively larger amounts, further boosting the foreign reserves of the central bank, which in turn gives further confidence that the currency is well-supported and provides an impetus for continued inflows….”
PIMCO
http://tinyurl.com/2ac7sn
The Kiwi dollar profits hugely from the carrytrade and commodity boom, sooner or later this will start working in reverse
Exactly. I lived in NZ and saw their economy go into the crapper in the late 70’s, which is why I left. I wouldn’t invest a dime in their dollars.
I buy CDs — I think the rates will improve fairly soon, though it is easy to find them over 5% at many places, particularly for 3-month, $100K blocks. As best I recall, EverBank has a brick and mortar office in/near Jacksonville. Don’t want to impugn them unfairly, but I could swear that something recently was written about their beyond-my-comfort-level involvement in the sub-prime market — I think it was the result of a merger or acquisition. At any rate, whatever I read caused me to drop them from my list.
Several of the major insurance companies offer FDIC-insured CDs at very competitive rates, among them State Farm and MetLife. An insider told me that rather than being profit centers, such CDs are sold there as a matter of convenience for existing customers, though anyone can go in and buy one. Cash-out is reported to be pretty straightforward, too, though maybe not as “in 5 minutes” as at a bank.
I usually only buy a CD if it is appreciably higher than a Treasury Bill.
Right now Treasuries are yielding around 5%, as are the high yield savings accounts at EmigrantDirect.com and INGDirect.com and HSBC.com.
The Treasuries are at least as safe as any CD.
And even though the high hield savings accounts above all have some issues related to their involvement in the mortgage sector, I’m not sure it’s any more than many other banks. (And I believe HSBC and ING to be “too big to fail”)
I’m sticking to treasuries and high yield savings accounts as they are more liquid.
(you can get a treasurydirect.gov account within 5 minutes… it is very easy to use).
HIC - I was thinking about startint to use treasurydirect.gov - how does that work? Would you set up a draft directly from your bank account? What’s the commission for T-bills?
Thanks (and sorry to go off on a tangent).
There is no charge to buy from treasurydirect.gov. You just create a new account on it, set up a link from your bank to TreasuryDirect - account number, routing number, etc. and you start ordering the money products from that site. If you buy, say, a 4 week T-bill, TD will automatically withdraw the amount (minus discount) from your bank. At the end of 4 weeks when that bill matures, it will deposit the full amount back to your bank. Very simple. I have been buying 3 month T-bills lately and have at least $1000 worth maturing every week. So based on a 4.8% yield, I am getting about $12 per week added to my bank account at a minimum. It would be cool to get $100 per week added. That makes a good night on the town with friends at the Kona Grill in Scottsdale.
packman,
To answer your questions about TreasuryDirect, yes, you do setup a draft directly from your bank account. There’s no commission. That’s the nice thing about it being Direct from the Treasury.
TreasuryDirect is not as easy as just opening a CD, though. You need to schedule purchases in advance, for example. Be aware of the auction schedule. You won’t know the exact interest rate until the auction happens (a few days before the security is issued). Instead of automatic rollovers, you must schedule a new purchase for the same date (week, actually) that an old security matures.
Cool - thanks for the info. I’m going to do that. I’m amazed there’s no commission or fee - thought for sure there was. Not too crazy about giving the Treasury direct access to my bank account though, but it seems like a huge enough benefit to be worth it. My money market is only getting about 2%.
Interesting what you mention about $1000 chunks - I though there was a $5k minimum - guess that’s just through my broker.
Instead of automatic rollovers, you must schedule a new purchase for the same date (week, actually) that an old security matures.
Not (quite) true.
you can have it rollover, all you have to do is say that you want it to rollover.
I do this all the time. I think you can schedule it to rollover for like 1-2 years or so in advance.
HIC
Presumably by “rollover” you mean that after a treasury matures - rather than credit the money back to your bank account, the money is applied toward purchase of the same equity in the next auction (or maybe the same action it’s sold in)?
When that happens - I guess then just the gains are credited to your bank account?
(following posted up above too - before I saw this)
Presumably by “rollover” you mean that after a treasury matures - rather than credit the money back to your bank account, the money is applied toward purchase of the same treasury in the next auction (or maybe the same action it’s sold in)?
When that happens - I guess then just the gains are credited to your bank account?
Here is a link to a blog which lists out the best CD and other bank rates. I see 2-3 banks offering 6% FDIC insured CDs. I think very shortly we are going to see 6.5% CD’s rates are moving up!
can you send me the cd link.. I don’t think it got posted.. chicken little is only in cd’s.. glad to have some company.
Bill Gates & Warren Buffett are short the dollar and long the Euro. Warren is not wrong a whole lot.
I doubt very much that either Mr. Gates or Mr. Buffet is net long the Euro any longer. The Euro may be the most overpriced currency in the world.
regarding the ISK, it dropped about 20% last year but bounced all the way back. It’s about the same place as it was a year ago, so if you didn’t lose your nerve and bail out at the bottom, you’re up 12% in interest.
just be happy with what you get in the US … despite current 4% ECB rate, 10-year fixed mortgage rates in Netherlands are still below 4% and rates on savings accounts barely above 2%. When you consider the 11-12% M3 growth it looks even worse
But with the euro going gangbusters against the dollar lately think of all the extra money you get. You don’t get extra money?….Okay think of how much more you can buy in American products with those super Euros. You don’t buy any American Products? Man we’re hosed.
dollar/euro exchange rate is about the same as two years ago… both are nothing more than worthless fiat paper, backed by empty promises from bureaucrats. When the dollar tanks, the euro (and yen) will go down with it.
One, the euro/dollar exchange rate is a lot higher than it was two years ago. Two, currencies can only go up and down against each other. They can’t all go down.
The dollar is clearly going to go down against the yuan and yen, which obviously means the latter two are going to go up against the dollar. The Euro I don’t know.
Check out the Vanguard treasury MM account. For the Admiral class (over $50K), the current yield is 4.89%, and the expense ratio is 0.13%. 100% Treasury, no MBS. Usually no state tax on the interest.
Treasury Direct is also very easy, and there is no expense ratio, other than your time.
CD’s can yield more, but I really don’t want to risk my money in a bank these days, since most have a boatload of MBS in their assets.
in ‘05 my siblings and i sold a waterfront home we’d had since the kennedy era. after paying enormous cap gains i put all my $ in 90 day agency discounts. no state tax. it gives me enough to pay my putrid LL and save that same amount to rollover or spend as i please. believe me, i wish it was 1999 then i could pay cash for a coastal area home.
after losing 75% paper value in stocks from dotcom i never want to buy stocks. hell i can’t even sell my intel and msft because of all the stock splitting.
thank you ben’s blog for the info and the laughs. i just wish a real crash in homes would start soon.
update: i’ll settle for bonds rates rising and stocks falling.
last year i bought pimco bonds( munis) made a buttload in the monthy but when it when down 35k i got out and went safe. gains offset losses. im happy to be even.
A bank is much less risky than a money market mutual fund. At least a bank is FDIC insured.
A mutual fund is insured by a company that insures mutual funds. Read your fine print- many mutual fund companies reserve the right to dip into your fund to pay losses in other funds. If the stock market goes ka-blooey, you might have to say bye bye to your MM mutual account.
Note treasury (federal) interest is not taxable by states, so treasuries are more advantageous for those of us in states with high income taxes (CA etc.).
The majority of my home sales proceeds are in the Vanguard CA Tax free. I have some T-Bills through Treasury Direct and less in direct money markets. Yes the after tax yield on the tax free is less than treasuries, but the increase in gross income impacts other taxes in many ways.
2 local mass banks just advertised 5.5% for 7 months. 3 months ago their longterm (7-36 month) rates were 5% at best.
“… and what’s left ?”
FHA revamped as a subprime outfit?
We all know our gov’t would never do something so foolish….
Let’s not mince words here — Treasuries are getting massacred here. Long bonds are off just over a point now, while 10-year note yields are soaring by almost 10 basis points. In fact, we are threatening a MONTHLY downtrend in 10-year rates that goes all the way back to 1994, for you technically inclined folks. This is a potentially major event in the bond market that shouldn’t be ignored.
Chart here:
http://interestrateroundup.blogspot.com/2007/06/bond-market-massacre.html
Hello Mike,
I don’t pretend to understand all that’s being said here. But the 10 yr Treasury Note seems to be going crazy today, like you mention.
My mothers broker just yesterday talked her into buying $15k of 4 yr US Government Agency Notes and $15K of 6 yr notes. Is this a good thing?
http://finance.yahoo.com/charts#chart2:symbol=^tnx;range=1d;indicator=volume;charttype=line;crosshair=on;logscale=on;source=undefined
this has been one of the worst Springs — the peak real estate selling season — in decades.
The net result of this is that the inventory of unsold homes continues to build,
Wednesday’s WSJ has the details:
“Growing inventories of unsold homes continue to weigh on the U.S. housing market, portending more downward pressure on prices, the latest data show.
The number of homes listed for sale in 18 major U.S. metropolitan areas at the end of May was up 5.1% from April, according to figures compiled by ZipRealty Inc., a national real-estate brokerage firm based in Emeryville, Calif. The data cover all listings of single-family homes, condos and town houses on local multiple-listing services in those areas.
The sizable increase is notable because, on a national basis, inventories of listed homes have typically been little changed in May during the past two decades, according to Credit Suisse Group. May is one of the peak home-selling months because families with children often aim to move during the summer vacation.
Some of the biggest inventory increases last month came in the metro areas of Seattle, up 12% from April; San Francisco, 11%; Los Angeles, 10%; and Washington, D.C., 9%.
Inventories also are up sharply from a year earlier. For the 15 cities for which year-earlier comparisons were available, combined inventory was up 29% from May 2006.”
As inventory continues to build, the effect on prices is inevitable.
The impact of this is already showing up in various consumer sectors.
And yet, some fools continue to insist that the housing slowdown is having zero impact on the broader economy. The best response to that silliness comes from Raymond James’ chief strategist, Jeff Saut:
“Now for those pundits that insist that real estate is not spilling over into the real economy, we ask the question, “Why has the Association of Home Appliance Manufacturers’ Index posted a roughly 10% decline in shipments?”
Or, “Why is Circuit City (CC) laying off 3,400 of its best sales personnel and attempting to hire maladroit sales people at a much reduced compensation package?”
Similarly, “Why is Citigroup (C) cutting 15,000 financial-related jobs?” And, “Why is GMAC stating that its Residential Capital subsidiary is going to hurt profits?”
Inquiring minds want to know such things.
Moreover, if the problems in sub-prime mortgages are NOT spreading, why are sub-prime mortgage companies dropping like flies, why are companies like ACC Capital closing their “call centers,” and why are delinquencies rising not only in the Alt-A complex, but in prime portfolios as well?” (emphasis added)
The answers to these queries are rather obvious: Housing is impacting the rest of the economy in a significant AND ongoing manner.
Further, it’s no coincidence that 1) housing prices are falling; 2) Mortgage Equity Withdrawals [MEW] are contracting; 3) Retail sales have softened notably.
Indeed, the broader risk to the economy is the impact of the real estate price declines on consumer sentiment. MEW has already declined from over $844 billion to well under $400 billion over the past 2 1/2 years. We still have the upcoming adjustable mortgages resets — and at considerably higher interest rates
Or, “Why is Circuit City (CC) laying off 3,400 of its best sales personnel and attempting to hire maladroit sales people at a much reduced compensation package?”
Circuit City wouldn’t be having the problems they are having today if they ditched the commissioned sales people a long time ago. I and most of my friends hate CC because of this - the help sucks and they pressure you to buy X over Y because of $$.
Sears has even discovered what a loser this model is with their new ’self-help’ stores. Seems to be a common thread with electronics stores going belly up; Comp-Usa, Rex, and Circuit City all use commission based reps.
Lowball groups on the rise?
Clever idea.
Time to form the SDLIC = San Diego Lowball Investors Club
LOL — wonder how Jeff is doing these days.
He disappeared a few weeks ago (he was not sleeping or eating when he last posted), and the thread he was posting on got locked. I didn’t see any more recent threads that looked like he might be there, but there is an active thread with Nigel Swaby from yesterday’s article there.
Count me in Stucco.
Actually, it might not be a bad idea to form a “lowballers” fund. The HBB’ers might be able to make some headway WRT sellers’ ego-driven prices.
Tables turned on the hedge funds:
The Sure Bet Turns Bad
Funds Howl As Bear Stearns Buys Mortgages
Just a few months ago, bets against securities backed by shaky subprime-mortgage loans were among the most alluring trades on Wall Street.
But the market for those securities has since stabilized, potentially hurting those who bet against it, and left a messy squabble in its wake.
SUBPRIME FIGHT
A band of hedge-fund managers accuse Wall Street’s Bear Stearns Cos. of attempting to manipulate the market for securities backed by subprime loans by purchasing shaky mortgages. Bear retorts that it has the right to repurchase mortgages and that sometimes it can help a struggling borrower. Meanwhile, an industry association that oversees derivatives trading has been drawn into the middle of the matter.
The confrontation provides a window into complex trading — and complex ethics — in the nation’s mammoth mortgage market, which played a critical role in financing the housing boom.
Hedge funds might not win much sympathy for making indirect bets against the financial health of struggling homeowners. But they say they are trying to protect the integrity of a burgeoning derivatives market that stands at the center of the controversy.
http://online.wsj.com/article/SB118117656641827178.html?mod=home_whats_news_us
Buying a turd for 70% off is still buying a turd.
The accusation is that Bear Stearns sold the derivatives to the hedge funds which, in the current mortgage default position should show a huge profit, but Bear Stearns is selectively buying the mortgages that go into default, rewriting the loans and pocketing the money from the sold derivatives.
Many on the board will have familiarity with buying “puts” in the home builders stocks and then watching the stocks go up under adverse conditions. The “put” buyers found out later that the home builders were buying their stock back. This is what the Hedgies are complaining about.
It is one thing for the hedgies to scam the market, but it is not fair if someone uses the hedgies tactics against them.
IMHO this could be the best thing to happen to force regulation of the Hedge funds.
What regulation would you propose? One dispute between a dealer and a fund and you want to further regulate the whole industry somehow?
It is more than 1 dispute, it is 600 Trillion dollars in derivatives world wide that are secret. Why do you think Germany is so worried? Mutual funds are required to disclose their positions, why shouldn’t hedge funds? What makes a hedge fund immune to rules and regulations that govern all members of the exchange?
I want to know what happens when Japan does an over night increase in rates by 1.5%. Do you think any hedge fund can survive a sigma 5 event when they are borrowing moneys from Japan? It is going to happen, the question is when.
This is about hedge funds that bought insurance against the turd turning down, and now that they turd has turned, the insurance company (Bear) making it more difficult for them to collect (because the measurement was on notes failing and Bear is buying out and reworking mortgages before the notes fail.
The hedge funds are alleging that bear might own a couple tens of million worth of the mortgage paper, but they’ve written the insurance on billions. So eating a few failed mortgages (to avoid a note default and payment on all the insurance) is cheap.
Some (including GetStucco) have hypothesized that this may be the mechanism for Fed interference in the housing market.
Stealthily create money and give it to the big IBs like Bear Stearns and Goldman Sachs. Then they can go on a buying rampage with this newly created money (thus no risk for their firms), stabilizing the market.
Nobody is the wiser until the dollar falls another 10% vs the Euro, Gold hits $650, gas hits $4.50/gallon and so on…
and the best part: the insiders have no risk and all the upside gain… they get the money first before it has been diluted… by the time it hits us in mid-America, inflation has taken its “tax”.
“insiders have no risk”…….
So the first assumption is that the powers that be have no ethics, the second is that they somehow have an incentive to enrich….already very rich people. Of course the PTB can’t immediately cash in on their largess but the third assumption is that they are “taken care of” down the line….always.
Hmmmm…I’m a corrupt person, helping rich, also corrupt, persons make “insider” gains with “no risk”. And I’m DEPENDENT on them fulfilling some unwritten promise down the road.
I’m not naive enough to imagine collusion never takes place. Its been proven so many times at so many levels that its clear people with “inside” power will abuse it. However, I find it hard to believe that, in this day and age where tracing activities is easier than ever, a MAJOR conspiracy operates continously to rig markets.
Can and will SOME insiders act oportunistically from time to time? Of that I have no doubt. Some will always take these kinds of risks and some will certainly get away with it. But to think this is some ongoing cabal among thieves seems a stretch to me.
Why? If YOU were dealing with thieves, would you trust them to perform? Wouldn’t you need PROOF of performance (payback)? I’d suggest most people would. I’d also suggest (having dealt with crooks at much lower stakes) that anyone bright enough to work for the Fed has a pretty decent understanding of how crooks will screw anyone and everyone over.
So, you work for the Fed (at a very high level), got some “friends” at GS, Bear or Merrill and you want to “help” them. How do you do it with any certainty that you and your entire career won’t get blown up dealing with sloppy scoundrels?
Again, I buy that collusion happens. I just think the idea of some ongoing conspiracy that can perfectly rig markets (for ANY length of time) is a bit of a stretch. Things are too complex, the communication is too easily screwed up, too easily monitored, suspicions are too easily aroused and the tracing of activities has never been easier to accomplish.
Lots of risk for the bureaucrat for some scoundrel’s FUTURE promise? Maybe there are dopes or greedheads who’ll take that risk but unless everyone in the FED is corrupt, they’ll be taking a pretty big risk anyway you want to cut it.
I’m not naive enough to imagine collusion never takes place. Its been proven so many times at so many levels that its clear people with “inside” power will abuse it. However, I find it hard to believe that, in this day and age where tracing activities is easier than ever, a MAJOR conspiracy operates continously to rig markets.
It’s not secret. Its official name is “The Working Group on Financial Markets”, and it is commonly referred to as the “PPT” (Plunge Protection Team).
You don’t need to hide your corruption when it is official policy.
OK so how did the 2000-2002 bear market in stocks happen then? Was the PPT on strike?
You just can’t hold asset prices above their true value long term. It can’t be done. You’d just be making people like George Soros rich by trying.
Nobody is the wiser until the dollar falls another 10% vs the Euro, Gold hits $650, gas hits $4.50/gallon and so on…
I assume you meant $750? Gold has been over $650 for some time now.
Well except gold is already above $650.
“complex ethics” — I suppose that is a twisted form of alliteration — “complex” is a bit tighter than “utter absence of.”
Great comment, Chip. Tell it like it is.
“complex ethics”
These guys are so twisted…”they couldn’t stand in the shadow of a corkscrew”
“The confrontation provides a window into complex trading — and complex ethics — in the nation’s mammoth mortgage market, which played a critical role in financing the housing boom.”
Complex ethics? I seriously doubt it.
One style of development I haven’t seen too much discussion about is “senior living facilities”. Here in the northwest suburbs of MPLS, there is a company looking to build a 500 person facility on 47 acres!! WTF!! I am by no means a big environmental person, but that is just complete waste.
For the most part, all of the old folks homes going up are going to be useless once the boomers tip over. Has NOBODY ever looked at a demographics chart in this country? Can people only make estimates based on the “predicted trends” of the next 3-5 years? Or do the boomers in charge just not care because they won’t be around to worry about the after math.
I know there are some heated discussions here regarding generations, but I am really starting to loathe the narcissism and short sightedness of boomers.
Well if the development leaves 46.5 acres as pristine untouched prairie/forest, I’m OK with that.
Frankly, most of what’s being built right now won’t last 30 years, why bother considering the demographic changes?
Because the zoning regulations that go with it won’t change. Sure, you can tear down the old-folks’ houses, but changing the covenants and restrictions to let the new immigrant families in there might be nigh impossible.
I was speaking from the point of view of developers. Not my own personal point of view.
“Senior living” trailer parks will be very popular. Super cheap living for those who only have SS as income.
Back when I was a medicaid administrator in Florida this made up a large group of my clients. Don’t forget that they go to Florida, rent the mobile home and the lot, and proceed to file bankruptcy. After ten years they are 75, shut in, and the home is disintegrating around them, as they are living without AC or a working roof, losing a limb every two years to diabetes since all they eat are potatoes.
You don’t need to die to go to hell.
“You don’t need to die to go to hell.”
A salient point missed by many until its too late!
That, or tiny apatments (
..less than 400 sq. ft. (again, bitten by the “less than” symbol).
Try using “<” (ie, <)
It’s not the next 3-5 years. According to the 2000 US census, the largest decadal group at that time was the 35-44 year olds, followed by the 45-54 year olds. It’s true there were fewer 25-34 (the children of the PRE-boomers). So around 2040, the need for “old folks’ homes” might subside. The most acute need for such facilities is probably still 20 years away, as the 65-70 year olds, if no longer working, tend to be in gated communities, in trailer parks, etc. but not primarily in “senior living facilities.”
The two senior complexes I’ve seen that have such acreage keep the great majority of it in its natural state, so that the residents have a pleasant view and natural places to walk. I think it’s fairly unlikely they will develop all that land, unless you’re talking about a Del Webb-type 55+ subdivision with 1/8-acre lots, clubhouse/pool facilities, and an assumption that most of the 500 people would be couples.
With Boomers just hitting 60, they’ll be around a lot longer than 3-5 years. More like 20-30.
And, there are more people in the GenX than the boom. Just not inreasing at the same rate. So, 2x as many boomers as WWII-ers. 1.05x as many GenX as boomers.
We’re not going to run out of old people…. Old people able to afford to live on their own as pensions are phased out or gone under and Social Security is forced to cut benefits??? Well, those we are going to run out of.
What exactly are those demographics?
Since 1950, those in the 45-64 age group have been in the low 20 percentages of the population. In 1870 those 20-44 made of 35.4% of the population. In 2005 those 20-44 made up 35.4% of the population (unchanged).
check the us census website.
OT, but a disturbing read of the pending immigration bill and it’s true intentions as well as outlining some of the unknown provisions (at least I haven’t seen them before) that will outrage the reader.
http://www.financialsense.com/fsu/editorials/deepcaster/2007/0606.html
Please write or call your representatives if you disagree with this legislation.
I was thinking about this last night, auger. The push to destabilize the US (much as was done to Russia/USSR) is well under way and I think the housing bubble has been a big part of that. I was speaking with a family member over the weekend about how large numbers of people have been de-stabilized as a result of the bubble and its bust, creating economic refugees migrating from one region to another in search of affordable living, not to mention those who have lost their homes, their neighbors and their communities. Whether they are FBs or not, it’s still lousy.
But now, take the housing bubble and bust (one way to destabilize), decrease the quality of living, involve the armed forces in a series of bogus military conflicts abroad (including the National Guard), unleash massive hordes of illegal immigrants into communities, outsource jobs, etc., etc. and you’ve got a recipe to tear this country apart. To Balkanize it, as it were.
Tin foil hat? In a pig’s eye.
I am firmly convinced that this is part of the ploy to create the North American Union. This union kind of reminds me of Homer Simpson’s failed attempt to breed a cat/do hybrid (the loyalty of a cat combined with the hygiene of a dog), and in our case we will probably end up with the worst qualities of the US and Mexico (run Canada, run as far and fast you can!).
The thought is chilling. Imagine being “disappeared” to a Mexican prison. Right now, you can pretty much avoid a Mexican prison by keeping your nose clean and staying out of Mexico. With the NAU, you can end up in a sh*thole in Chiapas. LOL! That oughta frighten FBs into paying their bills, threat of a debtor’s prison in Chiapas.
Sigh. And I thought I’d be able to shuffle off this mortal coil without seeing active combat.
Canada is certainly looking better and better every day. Clean water, educated populace, natural resources, and the rule of law is still in place. Canadians should do everything they can to protect themselves from the US, speaking as an American. You don’t need this mess.
Damn cold though…
Much as I love Canada (a short sail away), since the war in Iraq did not result in the oil flow that was expected, Canada has become the largest exporter of Oil to the US. To get this oil from the Alberta tar sands, Canada is strip mining an area a little larger than the State of Florida. To strip mine this huge area - every acre has to be clear cut. The 1.4 Billion acre boreal forest is 10% of the world’s forest and home to 75% of all North American waterfowl. It is larger than the Amazon forest. Now as a result of the last three years of strip mining the watershed is failing and the possibility of drought exists.
If you want a 100K/yr job (6 months of work) go to the oil fields - just do not expect to enjoy the scenery.
As an American living in Canada, I agree with you. Sometimes we think about coming back to the States but when I read stuff like that about that immigration bill I really want to stay up here.
Reporter Arrested on Orders of Giuliani Press Secretary
Charged with Criminal Trespass Despite Protest of CNN Staff and Official Event Press Credentials at GOP Debate in New Hampshire
http://infowars.com/articles/ps/giuliani_reporter_arrested_on_orders_of_giuliani_press_sec.htm
Saw this last night on FOX.
I believe you to be correct in that it is an intentional destabilization. They (who ever “they” are, the article below gives some hints) will require “chaos” in order to have the blessing of the american people to take away their constitutional rights (although it would never be put forth as such).
I don’t believe there is a way to stop this process. The majority of our representatives are complicit. The anecdotal evidence for this is our UNSUSTAINABLE deficits (you pick the one of choice) without ANY effort to fix them (it). They all know what the likely result will be but there is no effort to ameliorate the impact on the american people. This implies (at least to me) that this is the INTENTION of their (spending) efforts. The article below explains why this system of debt is required for the imposition of the NWO.
I agree that we are observing the set up for the elimination of the many freedoms that we enjoy (unique to the rest of the world). The MSM does not act as a “free press” so there is no way to warn the people. If an article such as the one I posted (which outlines the corrupt provisions and explains the likely genesis for them) ever made it into the MSM (it won’t, nor will any evidence of the attempt to implement the North American Union, evidence of my charge that the MSM are controlled), the immigration bill would be stopped dead in it’s tracks. Support Ron Paul so that he may have a chance to bring more of these issues into the limelight while he is still considered a candidate (although he has no chance since the MSM will not cover him or if they do it is with derogatory statements).
The following article is part nine of a series dealing with this idea of a “New World Order” that was first mentioned by George Bush (senior). The “meat” of the article is the second half but the first half is important for context. You should be able to access the first 8 articles by linking from the author’s name.
http://www.safehaven.com/article-7429.htm
I tried to post a reply but it didn’t go through. The following is part 9 of a series. The first half is a slog but relevant, the second half is the meat. I recommend tracking down the first 8 articles for a full understanding of where we are heading with this.
http://www.safehaven.com/article-7429.htm
auger, we need to cut all diplomatic ties to England. Period. You would be surprised at how fast things would straighten out in this country. The sudden bold unmasking of this country as the major irritant would be shocking, but emergency surgery is needed. With the possible exception of Vietnam (and I’m not even sure of that) every military conflict, every foreign and financial entanglement we’ve gotten ourselves into somehow has England at the core. Time for a second Declaration of Independence. And NEVER allow them as allies again until they’ve learned to behave as decent citizens of the planet.
The Wachowski Brothers had it right. For those of you who don’t know who the Wachowski Brothers are, no, they’re not some economic pundits. They made the movie “V for Vendetta”. As I said in another post in another thread not too long ago, artists have a way of cutting through the BS to the truth.
agreed Mr P.
But they just made the movie version. The original story was a graphic novel (adult comic book).
Thanks for the links and info.
Sen. Reid described illegals yesterday as “undocumented Americans”. And to not forget, Bush described them a few years ago as “citizens”.
I’ve always described myself as a dem…no longer. Of course I loathe the repubs too. Last honest man standing in Congress remains Ron Paul.
Did you see CNN was taking a poll on the results of the debate and pulled it down after Ron Paul was getting 78% of the vote.
I’ve seen several polls like that. And yet the media continues to marginalize him, calling him a longshot, etc. And don’t even get me started on this ridiculous new practice of asking the debaters to “raise your hand if you believe in X”. I’m waiting for “raise your hand if you’ve stopped beating your wife”.
“Last honest man standing in Congress remains Ron Paul.”
Testify, Brothah Spike! Take heart, Ron is known even at street level, even by people you’d never expect to support him. We must make our voices heard.
Ron Paul, ex libertarian, IS the man. The media is screwing him though.
The effort to marginalize Ron Paul is really disturbing. The effort on the Dem side to do the same to Gravel is equally suspect. One would think the election has already been determined, the spoils divided, and we’re just watching a long-running circus act.
I was having dinner last week with people from France, Switzerland, and China. They all knew who Ron Paul was and the general consensus was that he would be the best of the bunch. It is surprising to see how well known he is for getting almost no mention in the mainstream media. (Aside from the whole Giuliani incident.)
re. Ron Paul: I’m registering as a Republican this year so I can vote for him in the Primaries. If he doesn’t get the Republican nomination, I’ll fill his name in as a “write in” candidate at election time.
This guy is too forthright and utterly un-owned by the corporations. Also has no time for sloganeering. So of course all the other pols and the media are threatened by him. He’s just too honest for them!
He’s got an awful lot of support though. Didn’t Jimmy Carter “sneak up from behind” a couple decades ago? Ron Paul could do the same, with or without media support.
And with where this country’s heading on so many fronts, the Republicans and Democrats just might *let* him win the next election. Then they could blame him for the whole mess of the next several years and both parties come out smelling like roses farther down the line.
Eww Gross….NO more showers for You Gluttonous Los Angeles Residents…Time to stock up on the 99 cent bodega deodorant……
BUT but but….our $1 Million dollar McMansions have almost no lawn to water….Can we use that as our Carbon footprint trade and take more showers?
http://www.reuters.com/article/environmentNews/idUSN0642623620070606?feedType=RSS&rpc=22
Funny how things like hurricanes and lack of water in the Sunbelt have been ignored in the past 30 years. Perhaps the Great Lakes region isn’t so bad after all.
Perhaps the Great Lakes region isn’t so bad after all
If you move here you should make sure you live inside the watershed area of one of the lakes. No new draws from outside the watershed. Cities inside are limited in their new draws. We are going to come close to matching many of the water restrictions the rest of the country will have - we have already recognized the importance of preserving the lakes. All Great Lakes states and Canadian provinces have signed a preservation and conservation pact. State legislators are in the process of ratifying it - some already have.
Chicago is one of the worst offenders. We are working to fix that. Once the Chicago River is clean enough, expect the flow to be reversed again. Other projects are happening too. For example the newest wing of the gigantic convention center complex has a drainage system that will take clean rainwater collected on site and send it straight to Lake Michigan. Previously, all rainwater in Chicago gets sent through the treatment plants and eventually goes into the Mississippi, which is unnatural. It should be draining into the Great Lakes.
I love this. Everyplace is running out of fresh water, but our “leaders” want to fling the borders wide open. We barely have enough water for 300M people. What’s going to happen when we reach 500M? 500M is ancticpated by mid century.
Also, why is the Sierra Club for open borders?
I have heard the administration’s foreign policy described as: “Invade the world, invite the world”.
High end properties (relatively speaking for this area Grayslake IL) are sitting. Lakefront properties (~600K) have been sitting since spring. I am seeing strong evidence that the spring selling season is a bust. Theory is buyer don’t see RE as a can’t lose investment, since 10%+ previous gains now = flat -> losses. The thrill is gone babe (hat off to BB King).
I know someone who owns two homes in SE McHenry county (exurb of Chicago). He rents one out and he lives in the other one. He plays landlord on his crystal lake home with an option arm. Yeah, you heard that right. He doesn’t charge enough rent to cover a fully amortizing mortgage.
The second home he lives in with his family. I feel bad for the guy because he paid way too much money for his house. I mean way to much money. He paid above $250K for his quaint but average home in Cary. According to Zillow, there hasn’t been a sale over $200K in his entire neighborhood in the last year (other than his). By no means is his house the nicest either. Unless by nice you mean industrial carpeting in the master bedroom and a two car detached garage. I told him that I thought the house was way too expensive and he said that real estate always goes up. He said that he and his wife fell in love with the place and with the growing family, they needed to move. Believe me, this guy doesn’t have cash to be throwing around like that b/c he’s got 4 kids. So he made a completely emotional decision to overpay at least $75K for an average house. Why would he do such a thing???? Funny money - he only needed 3K down, he has a teaser interest rate (fixed for a number of years though) and he bought the house based upon monthly payments, not price.
I feel really really bad for him because I know it will all end horribly.
i wouldn’t feel badly at all. option ARM’s, teaser rates, next to nothing down……….he’s f’d because he chose to be. no love from me at all, other than to say i’d like to be on the courthouse steps when he craps out. i’ll give him 120K to take it off his hands.
Home prices never go down, no?
The sucker, er I mean, seller paid $860,000 in 8/3/2006 for this POS.
Now after numerous price reductions, it’s at $699,000.
The previous owner is a realtor and was originally asking for over 1M. The property was marketed as a builder/developer special with the potential to build a multi-million dollars house on the site. It was on the market for a very long time.
Yup, all it takes is one sucker.
MLS ID# 70530983
175 WAVERLEY AVE
NEWTON, MA 02458
List Price: $699,000
Prior Sale: $860,000 8/3/2006
Prior Sale: $360,000 6/30/1987
Home of genius
Here is the link to the property.
http://homes.realtor.com/search/listingdetail.aspx?ctid=25649&ml=3&mnp=34&mxp=33&typ=1&sid=d9f2de9353a54007a25cfc42c996d862&lid=1076646392&lsn=5&srcnt=19%23Detail
The snow-covered BBQ grill in the back yard is a nice marketing touch.
wow, Newton is the crem de la crem
they’re even having auctions there
Nah, actually Wellesley is much higher. Newton didn’t do enough to keep the “rabble” out, such as young families with kids.
Sir Isaac,
Here is a web site with 1400 similar situations in the Sacramento market. It is fascinating to scroll down through the listings. Flippers In Trouble. FIT’s for short. About 6 months ago, there were 600 FITs. Now, over 1400. The rate of increase is 2-3% per week. The question is will Sacramento break 3,000 before December. Enjoy http://flippersintrouble.blogspot.com/
I’m moving to Sacramento next month (job relo) and I’m torn I hope the market crashes hard so i can either rent a home really cheap, or buy in the next 5 years or so. But I also realize it’s getting so bad what may be a nice neighborhood today might well be a methhell when i’m ready.
“Minutes” from schools–don’t say how many minutes! It’s on Waverley Rd–no public transportation (except the Nexus, which is no more). Ha ha, I saw this place run way up around 2000. I guess they think they’re on Centre St.
This house is pretty ugly, even for Newton. It looks more like the houses on south Parker or Rt. 9. Yeesh. I guess they regretted shelling out 3/4 million for this suburban box when they could have overpaid 3/4 for a penthouse in Brookline and walked down to street level to buy one burrito a day at Anna’s (all they could afford after the mortgage payment). Man, I miss Anna’s.
There are homes in Newton worth $850K easily, but that ain’t it! Lol! I love how it was sold as a tear-down… It’s on a nice street, but not THAT nice. It’s in the little pocket near … Brighton. Yup, that’s right. Oh yeah, I want to live right next to Brighton, real desireable there.
Bet the owner LOVED trying to fight his/her way onto the Mass Pike at the Newton Circle interchange … hahahah …
What is the saying? Pigs get slaughtered.
Btw, if you’re not from NE, when the original owner paid $350K in the mid-80’s, they were being bent over and abused too. That was during another obscene run-up in real estate. In 1994 houses on that block probably sold for the same or less. This is New England, and it may be worth $500K. Long term, though, Newton has lost a lot of its special value over other communities due to MCAS. And this house is too far from the green line.
My little nook of Newton is still very nice. Unfortunately the lowest price single family home, that is not an obvious tear down, is 4.5x my income and I make 30% more than the median family income of the area. It’s just absurd. The people who live here couldn’t afford to live here if they had to buy at today’s prices. Can somebody remind me when the fact that I have a 20% downpayment saved is going to matter?
He got his $500,000 tax free capital gains exemption:
Prior Sale: $860,000 8/3/2006
Prior Sale: $360,000 6/30/1987
Adventures in $hitboxes, Part Deux
Was having dinner at a friend’s last night. She informed me that a house in Jenny’s neighborhood is for sale. (Jenny just bought a house in the correct zip code.) I thought my friend was aware that my buying plans were on hold. I jokingly said, “Well, it’ll be nice for someone who has a regular job!” (I’m partially employed right now.) I do not tell people the true reason I have switched status to bubble-sitter. They do not know there is a bubble, so WTF is the point?
Friend does not get the hint. “But you have your house money…”
Me: “I didn’t want to say anything, but I’ve been driving to Atlantic City every weekend and I crapped out one too many times.”
She actually believed me so I told her I was j/k.
We ended up driving to Jenny’s house anyway, cause friend was determined to show me the stinkin’ house. I was curious to see what Jen had purchased, for her new residence is in Chadds Ford. There’s some real money there. But Jen got a SFR for $260k. I thought only THs could be bought for that amount in Chadds Ford.
We drove up to her house, and I thought, boy did that girl get robbed. She’s in a lower income neighborhood tucked away in the wilds of Chadds Ford, and it’s just stucco and brick crackerboxes, nothing special, but the population is stable. It’s actually cute if you get the house at the right price. Jen should have paid $150k max for the house. It was a tiny rancher, no garage, everything whitewashed, even the brick. Very small lot. The windows were short and squat, set up close to the roof line - reminiscent of the George C. Hill Correctional Facility. (AKA the county jail). Friend told me that the inside “needs a lot of work”. That phrase usually translates to at least 50k of rehab in these parts.
And the house down the street was just waiting for my special touch! Except the seller wants $290k.
I didn’t express my true thoughts to the friend that drove me by the two houses. All I said when she told me the ask price of the house on the corner was, “Rotsa Ruck”. (It’s not on the MLS yet so I can’t post a pic in all its craptastic glory.)
I just read last nite’s Cali thread, about the stigma against renters. Did my friend think she was doing me a big favor by telling me about the house on Jenny’s street? Is she trying to save me from the Shame of Renting?
Why don’t people just mind their own biz and leave us bubble-sitters alone?
i didn’t know it was possible to have a “low income” area of chadds ford. she paid 260K ’cause it’s still all about location, at least in perception.
The old money places always have a little enclave that houses the support staff:
where The Help lives
You are right on target about the location and perception aspect. Jenny and her husband are way overextended. But now they can say they are stretched in Chadds Ford instead of doing OK in Brookhaven.
I had zoomed in to the stucco box ‘hood, but the link didn’t hold.
It’s right off Rt.1, make a right on Brinton’s Bridge Rd.
if you ever care to sight-see
Thanks for the pointer! I’ve been to Chadd’s Ford quite a few times (friends of mine used to live there) and I always wondered where the working class lived. I imagined they lived farther away than that Brinton’s Bridge Road.
By the way, those good friends of mine had a really nice somewhat modern house off of Smith Bridge Road, heavy old-growth wooded lot with huge trees shading a big multilevel deck. I loved the woodsiness. After a few years and a job transfer, they moved on…
I drove by a couple of years ago, and the new owners have ripped out those 80 year old trees and put in a garish pool and a tennis court. Maybe it was just the summer sun that day, but it sure seemed a lot hotter than it ever did when my friends lived there. Sad. (I hate seeing trees ripped out, especially so many really nice old ones.)
(I hate seeing trees ripped out, especially so many really nice old ones.)
————————-
Then you’d hate to see San Diego. Oddest thing here, but everyone rips out the trees. They say they’re too “messy” — ya know, they’ve got leaves and such.
lol. no doubt. which would suggest that they’d be livin’ large in south philly……..(if you can get over the occasional gunshots!)
A low income area of Chadds Ford? That’s certainly news to me! (I grew up outside of West Chester. The Chadds Ford area was the uppah crust to us.)
When you run against the crowd, the crowd will hate you, that’s why. Always happens. In fact, it’s a useful part of anybody’s Bubble Barometer - if people get angry and upset when you question fantastic price increases in any asset class, that is a warning flag.
Good way to put it.
Your friend who bought in the ‘correct’ zip code is just another example of people living beyond their means.
I definitely don’t live beyond my means but I know a lot of people who do. My peers and I graduated from law school the earlier part of this decade and like most law students, we all borrowed a ton of money in student loans. Many people I know have at least six-figures in debt and make only $70k or $80k a year, including myself. (About 5% of all lawyers make the $125K upon graduation like in the movie ‘The Firm’. Most lawyers start much, much, much lower than that, but their incomes increase exponentially as they gain more experience.)
I run into these people all the time and we talk. They mention the new condo in the correct neighborhood, the new leased car, the 46″ plasma screen tv, the vacations to Costa Rica, the hardships of finding a SFH in a good neighborhood for less than $750K, etc.
I mention that I’m attempting to pay off my student loans early. I say that I pay half of my take home income every month towards my loans, that way I can pay off my loans way early. There’s no sense in paying literally hundreds of thousands in interest - so a financial manager at Sallie Mae can take yearly vacations to Hawaii. The interest rates on my loans are higher than any CD I could buy at a bank. It makes more sense to use my extra cash to pay off debt than investing it. (buying 42′ plasma screen tvs is NOT an option).
Everyone I’ve told this to thus far has given me a blank stare. And I mean a blank stare, like I’m some kind of nut job because I don’t want to carry student loan debt for 30 years. It boggles my mind. That’s how I know that in the future I’m going to be financially much better off than these people.
totally agree eagle. good plan………but you lost me at the plasma. take $2500 and get the tv! you deserve it.
Young lawyers don’t have the free time to watch TV.
Might have missed the sarcasm, but I think his $2500 tv will cost $3750 by not paying off the loan.
Small points aside, this is the part that I resonated with in your post:
There’s no sense in paying literally hundreds of thousands in interest - so a financial manager at Sallie Mae can take yearly vacations to Hawaii.
There’s little in the human condition that is more powerful than being taken advantage of. But by some miracle of marketing, most people that have taken funny loans are immune to this force. How?
Because they believe that real estate always goes up. Paying interest on a home is different, as the thinking goes, because one’s home will always be worth more in the future. But paying money for a degree? Education is just like throwing your money away. Real men go out and work with their hands to earn a living. Who needs some stinkin’ college degree to earn a living.
Yes, I think there’s a lot of truth to what you write. But don’t sweat the attitude of those who don’t see the value of education. You will have the pleasure of exercising those skills (providing vigorous defense, well-thought out contract, or whatever you’re shooting for) as a career. Doing things that add genuine value to the world will add meaning to life, and it is really hard to put a dollar value on that.
“Education is just like throwing your money away. Real men go out and work with their hands to earn a living. Who needs some stinkin’ college degree to earn a living.”
Sounds like some of my friends. Especially the ex in-laws….”why is Moman going out of town for an education conference again, Fred has worked at the same gas station for 10 years and never had to travel anywhere?”
Then I have another buddy bragging about getting accepted to Duke business school, but turned it down because he was “tired” of studying. Last night he was crying in his beer about earning $34,000 as a telemarketer, saying he wanted to trade lives. I just told him to hang in there, what else can you say to someone who is pissing it all away (in the bathroom of the local bar).
Speaking as someone that chose to live without a TV for many years…
$2500 buys a hell of a lot of beer at the local bar, which in my case had at least $75,000 invested in TVs and satellite dishes. Oh, and there are women there, which may not be the case in Legal Eagle’s living room.
which is exactly why he needs the plasma. how much cash you gonna save chasin’ the babes at the bar? and JP, at the end of the day, $2500 is just $2500. it ain’t a life changing event……it’s a tv.
Would LOVE to buy into the correct zip code here in suffolk county long island for only $260k! However, entry to the right code come with a 500+ prcie tag with taxes approaching 10k. For that you get a pretty tiny crappy crap house!
The problem, Legal Eagle, is that many, if not most, highly educated people know little about finance and building wealth. I got a physics degree-very practical in many ways, but I didn’t know sh*t about money when I graduated. (Although even I figured out that it was better to pay off an 8.6% loan than try to save money at 0.30%.)
I know that lawyers have to spend a certain amount just to look proper in the courtroom (cost of doing business, like PD points for an engineer), but outside … you are taking the right tack.
Law schools and medical schools have figured out that students will take on gigantic obligations for the hope of future compensation, but in the end, research shows that people in this professions do not end up wealthier, because of the enormous spending that’s expected of them. It comes in and goes right out.
Makes me feel better about working in government.
Small needs, small outflow, net accrual. Hell yeah.
$2500 for a TV? I’ll stick with my $300 TV thanks.
I got a 42″ LCD at costco for $1200. Use it about 1 day a week, but I’d do it again in a heartbeat because it looks damn nice, and women think you’re wierd if you’re still watching a 13″ black and white. Or at least the women I know.
“Blow up yer TV…”
“women think you’re wierd if you’re still watching a 13″ black and white”
Replace “watching” with “driving” and “13″ black and white” with “93 Volvo”
OR
Replace “watching” with “renting” and “13″ black and white” with “1 BR apt”
and you’ll see how we got here. If a woman I knew looked askance at me for not owning a TV, the door would not touch her behind during her egress. I like the woman who looks at my library first off.
We are so FUBAR in ‘Merica.
women think you’re wierd if you’re still watching a 13″ black and white. Or at least the women I know.
————————–
Then you’re running with the wrong kind of women. Seriously, stop competing with all the moronic “studs” for the hotties, and try meeting NICE girls at the library. You’d be surprised how many good people are out there. Might find a number of them who actually think you’re **cool** for not having a TV (if you should be so inclined).
Get out of the bars and into the libraries if you want to find a good mate! (goes for both males and females)
Good luck!
CA renter -
met current BF at the library!
he has a TV, but no cable. I admit I have to return to my lair for the occasional cable/channel surf fix. There was a time, back in the 20c, that I lived w/o TV. Once you get reaccustomed to it, it’s hard to get off the pipe. I mean, tube.
“On our way to being Orange County” - Napa Valley
Welcome to California, home of sprawl
http://tinyurl.com/38flq9
More Orange County related stuff.
“Most think O.C. market will recover before others”
http://www.ocregister.com/ocregister/money/homepage/article_1719321.php
Notice the comments are far more bearish than the writers dare acknowledge.
It’s some how reassuring to see they’re still peddling worthless swamp land in Florida:
http://tinyurl.com/32gnbr
(From the article: “Then, the disclaimer. …
We have not visited all of the lots we own and are making no representation to the condition or buildability of these lots, as some of the lots we sell are raw virgin uncleared lots without road access and/or utilities. …Please be sure before making a purchase to do your own due diligence.”
What more of a disclaimer would an English-speaking person need, to get them on a plan and then an airboat, to inspect the property before purchase? The guy may be the world’s biggest jerk, but how is it a felony if you warn people the land may not be buildable and to do their own due diligence? The fact that he was able to buy it means the land itself is not “illegal” to own. The Nanny State should protect them from every possible stupid decision them make, it seems.
Curt,
My brother is a helicopter pilot in Titusville. I was over there a couple of weekends ago screwing off. We found a local Century 21 ad for a lot in the middle of nowhere. I showed my brother and he said “I think i know the area listed and the only acess is by air”. So we called the listing agent and got the adress. The only way we found the AREA was by helicoter with a gps. We did have fun flying around though.
The kicker was in her ad she stated “Great investment potential”
Hahahahahahahahahah
Chris
Wow, and I thought Titusville itself was the middle of nowhere already! But at least it has some roads!
I went to a wedding last month in Mims, FL … oh … my … god …
I don’t really understand how people can live in places like that, unless they’re trying to hide a drug habit. Heck, living there would probably necessitate the drug habit.
not a gator…
How insane is it…In the last week this lot has reduced almost 20k. This is the one we flew over in the middle of BFE…The lot was listed at 39.5k or 35.9k,do not remeber which…
http://www.century21.com/buy/property_detail.aspx?teasers=property-detail-pic+Property+Detail+with+Pictures&tr_key=32016970&bSite=N&City=Titusville&State=FL
Good for a laugh…
Chris
http://www.rylandtrouble.com/
There is a link to a video news story as well. Looks like the shoddy bubble construction is starting to make news.
Thanks for the post, will. These pictorial reports will become more common, IMHO. The words “homebuilder” and “shoddy” will become synonomous.
I have commented about not buying or even renting anything built during the boom. I have a feeling anything built during the bust by a large homebuilder will be even worse, as they try to squeeze out any profit they can get. Declines in cost of labor or materials will NOT be passed along to the buyers. Delcines in quality of construction WILL be passed along to the buyers.
Geez, are those pictures just from one house?
It made me feel sick looking at that, It is a house of horrors.
Holy Cow! That house looks like it was hit by a major earthquake or something. The house is literally falling apart at the seams.
Kinda makes me want to buy a used house that has had time to settle.
I recently had a house relatively close to the San Andreas fault in CA. One big factor in buying the house was that it was built in 1890 - and thus had gone through “the big one” in 1906 as well as all the other little ones. That provided great comfort believe me.
Same’s true of other non-earthquake areas as you mention - buying a non-new house, even recently-built, has a big plus of having had time for any major structural flaws to make themselves evident.
The SD Union Tribune has good news and bad news on the inflation front today. The bad news: Stocks are getting hammered thanks to fading rate cut hopes:
———————————————————————————
Inflation worries hammer stocks
Jolt in labor costs fuels skid for a second day
By Jeremy W. Peters
NEW YORK TIMES NEWS SERVICE
June 7, 2007
After rising almost uninterruptedly for three months, the stock market tumbled for a second day yesterday over fears that inflation is not settling down enough to satisfy the Federal Reserve.
With long-term interest rates for government bonds flirting with the 5 percent level and Fed officials raising louder alarms over inflation, investors who only a few days ago were still counting on the Fed to cut its key short-term rate this year are starting to worry that borrowing costs could go even higher if price pressures continue to build.
New Labor Department data for the first quarter showed yesterday that productivity gains were slower and labor costs rose three times faster than first calculated. While that was in part a statistical aberration because of stagnant growth during the winter, it was also seen as a sign that American businesses could be facing higher costs and lower profits down the road.
The labor numbers came as the White House released a new economic forecast that ratcheted up its estimate for inflation and predicted the job market would remain tight, with unemployment holding steady at 4.5 percent. The day before, Fed Chairman Ben Bernanke had indicated that he was still concerned that underlying inflation remained “somewhat elevated.”
http://www.signonsandiego.com/uniontrib/20070607/news_1b7market.html
“Breach” — love the word, loved the movie…liquidity pump appears to be on high blast…
June 7, 2007 9:43 A.M.ET
BULLETIN
Dose of rate fears hits Street
Ten-year Treasury’s yield breaches 5%; crude reclaims $66 mark
Stocks step off broadly lower, spooked by rising Treasury yields. Traders find some retailers’ sales results wanting.
• Bonds feel the heat | Weekly initial jobless claims down by 1,000
http://www.marketwatch.com/?avatar=seen&dist=ctmw
WSJ interactive inventory chart. Check out the spikes in LA & Chiago since December…
http://tinyurl.com/2vdhh2
10 year bond just clanged the bell in 5.05% this morning….expect higher interest rates, more inflation for goods we eat and consume.
They are waiting for the bell on Wall Street…should be interesting
yep! I am buying a $1000 ten year note next week and it could be 5.2%.
Actually the stock indices will probably drop over the next two years (I think the Dow peaked above 13,600), but that’s when I will really enjoy buying more shares!
Market down 127 points in NYSE industrials….10 year bond up…up…up….5.11%
A a few more days like this and will go Treasuredirect for awhile to park money.
Treasuries are a great place to park downpayment money when all hell is braking out in the bond market. I did this in 1987 (after the bond market crashed in the spring) then sold the bonds in 1992 to provide a downpayment on a house, when there were tons of affordably-priced homes on the market and bond yields and l-t mortgage rates had dropped.
The good news from the SD Union Tribune: Area rents are declining. (Some time ago, a few of us pointed out here that a housing glut will eventually put downward pressure on both rents and purchase prices…)
Aside from a persistent glut of unaffordably priced homes, the fact that lots of middle class families (the kind that hold jobs which drive the local economy) are giving up on settling here and moving inland due to unaffordable living expenses is leaving behind more vacancies in the area housing and rental markets.
———————————————————————————
More apartments available for less
Six months ago, a county survey found vacancy rates had fallen to 3.1 percent . . . How quickly things change
By Emmet Pierce
STAFF WRITER
June 7, 2007
Apartment vacancies in San Diego County are rising as average rental rates have declined, the San Diego County Apartment Association reported in a study released today.
The association’s Spring 2007 Vacancy & Rental Rate Survey found a 5.1 percent countywide vacancy rate, compared with 3.1 percent in its fall survey. The vacancy rate a year ago was reported at 3.4 percent.
The twice-yearly poll of local landlords and property managers found the average weighted monthly rent for all types of units was $1,142, a decrease of 8.3 percent from six months ago. Year over year, the decline in rental rates was only a half-percent, however.
Some analysts said they were surprised that the study found rents to be falling. Six months ago, the association reported that landlords were enjoying rising rents and reduced vacancies. At the time, association Executive Director Robert Pinnegar said potential home buyers were swelling the ranks of renters while they waited for house and condo prices to fall.
Between 2000 and 2005 the price of many homes doubled throughout the county. Although the pace of sales has slowed significantly, prices haven’t dropped sharply. They are only about 5 percent below the peak of the housing boom in November 2005.
http://www.signonsandiego.com/uniontrib/20070607/news_1b7rents.html
P.S. This drop in area apartment rents bodes poorly for area “starter home” prices. Many of the recent vacancies represent young families trying to climb on to the SD property ladder (the kind who build careers and businesses) who have finally thrown in the towel in disgust. There is a bigger hurdle for young families to get back in to unaffordably-priced SD once they learn that they can actually have a home of their own and a life elsewhere. So I am wondering who is going to buy all these “starter homes” I see priced at $700K+?
The SF Fed and their lending industry constituents are looking for a way to help homeowners avoid getting foreclosed. I have a suggestion to the lending industry going forward: Don’t encourage people to buy stuff they cannot afford.
————————————————————————————
Helping out homeowners is prime topic
Lenders, others discuss fending off foreclosures
By Roger Showley
STAFF WRITER
June 7, 2007
Moving from assigning blame to looking for solutions to the growing subprime mortgage crisis, the Federal Reserve Board’s San Francisco bank yesterday gathered lenders, consumer advocates and fair-housing experts to look for ways to save financially distressed homeowners from foreclosure.
“I ask that it not be about blame, not about pointing fingers,” said Melody Neva, the bank’s Southern California community development manager. The session was the third of six planned in California, Arizona and Nevada.
Scott Turner, the bank’s community affairs director, distributed maps at a meeting in downtown San Diego that showed a concentration of problem loans in neighborhoods south of Interstate 8.
“The homeownership gains are going to be threatened in San Diego,” he said.
Many of the neighborhoods have heavily minority populations. However, the region’s problem overall has not been as acute as in other metropolitan areas, particularly those in Ohio and Michigan.
Cristine DeBerry, California outreach director of the Center for Responsible Lending research group, urged lenders to formulate solutions for families facing rising mortgage costs as their subprime loans reset to higher interest rates this year and next.
“The industry should be stepping up and (taking) responsibility for (subprime) products they put out,” she said.
http://www.signonsandiego.com/uniontrib/20070607/news_1b7subprime.html
Ok, this looks fish as hell, any ideas from the “group” as to what is going on? she buys the house for 100, then sells it to herself? how? why?
ADDRESS: 1012 AVOCADO ISLE
CITY: FORT LAUDERDALE
ZIP: 33315-1338
TYPE: Single-family
BEDROOMS:
BATHS:
SQUARE FEET: 1220
PRICE: $100
ASSESSMENT: $553600
TAXES: $9000
BUYER: KRINSKY FRANCES
SELLER: GEORGIA RUSCUP
FEATURES: No pool
6.
ADDRESS: 1012 AVOCADO ISLE
CITY: FORT LAUDERDALE
ZIP: 33315-1338
TYPE: Single Family
BEDROOMS:
BATHS:
SQUARE FEET: 1220
PRICE: $100
ASSESSMENT: $553600
TAXES: $9000
BUYER: KRINSKY FRANCES
SELLER: FRANCES KRINSKY
FEATURES:
Looks to me like a correction of the records, putting first name/last name in the correct order. Sort of like the old accounting rule of writing all entries in ink — no erasures, because you have to be able to trace all changes, no matter how minor they appear to be. Just my guess.
You’re right, Chip. I used to see that when I did title searches a few years ago.
Thank you, darn… I was hoping for something more entertaining;-) but that makes perfect sense.
Housing’s Biggest Cheerleader Moves
Lereah will be in charge of a new venture. Note to self: Look at Move and get ready to short.
the end of the housing-market pumping in which National Association of Realtors Chief Economist David Lereah has engaged. His ability to make bad predictions was, to my mind, only surpassed by the magnitude of his bombast, or perhaps his ill timing.
This is a guy who looked at dwindling numbers from the likes of Hovnanian Enterprises (NYSE: HOV) and KB Home (NYSE: KBH), saw subprimes melt down at New Century Financial, watched Alt-A get worse for the likes of Indymac (NYSE: NDE) and Washington Mutual (NYSE: WM), yet consistently told the press that all was well. I still have no idea how self-respecting business journalists anywhere could have parroted his biased misinformation for so long.
For those of us who simultaneously looked forward to and loathed his monthly trade-group propaganda, today is a day of mixed emotions. Apparently, Lereah is moving on to Move (Nasdaq: MOVE). Move runs Internet real estate sites, something I think is a pretty bad business to be in, unless you’re The Google (Nasdaq: GOOG) and can throw something together that just might up-end the entire apple cart. According to an NAR press release, Lereah will be in charge of a new venture. Note to self: Look at Move and get ready to short.
Posted this at the bottom of the BB yesterday, thought I’d put it here in case anyone was interested.
Foreclosure’s Filthy Aftermath
As foreclosures become more frequent, so do the bizarre and shocking stories of abandoned animals, insect infestations, and deplorable living conditions
http://www.businessweek.com/bwdaily/dnflash/content/jun2007/db20070605_228494.htm
these deadbeats are such sC**. i would like to lock them in a dirty empty house with no food or water. poor animals
these types of people will have a special place in hell come judgement day!!
I have been saying for 2 years that animals would be the silent victims of this disgusting bubble and aftermath. As a very active rescuer, I see this every day, even in my beloved French Bulldogs, which are very very expensive dogs.
BTW, if 1500 breaks on the S&P, watch the waterfall.
I’m gonna take a shot at the long side at 1500 with a close stop. Lot of support there.
Hahah. The bear is long. We’ll see if the bulls have any gas. I suspect not.
Hello,
I have been reading here for awhile and maybe I understand most of what I read. I have noticed houses selling for more than 50-75k than others are being listed and I figure perhaps it’s fraud. I am trying to figure out how they do it.
1. List house.
2. Agent tell’s interested party that “I know it’s expensive but we can work something out.”
3. Interested party is told they can get 50k cash back if they buy. They ask agent if that is legit?
4. Agent says “Sure honey,” we will just add it on to the price and you won’t even notice the difference in the payment. Shows them and it really dosen’t move the payment much.
5. Interested party thinks “Wow, plasma, new furniture, BMW!” Says “OK.”
6. Agent get’s appraiser to come in with the right number.
Heres where I get lost
7. Mortgage broke (friend of agent?) gets a loan.
8. How does the cash get broken off the purchase price and end in the buyers pocket? The seller rebate.
9. Dosent this ring a bell at the IRS when the money hits there account?
Thanks,
This is my short carnage list (KBH TOL LEN CTX PHM) and I am enjoying their decline. I think support is gone now
HOV too.
HOV looks like it’s falling into the abyss (sp?).
Does anyone think BB is a douche? He didn’t touch the rates since he’s been there, while ECB, BoJ, and the rest are tightening.
It will not end good.
Always beware of guys with full beards and bald heads…very scholarly looking…..wonder how he will look from a helicopter dropping Ben Franklins by the bushel?
BB is just doing his job as the speaker for all the major banks of this country. He NEEDS to make actions to keep corporate america happy. Thats his only job. Citizens of this country are just cogs to feed the corporate machine/government. Its all stacked again the average population of this country.
Even though i hate this expression. “hate the game, not the player.”
euro already declined 1% after the latest ECB ratestep (could be related to the Treasury rates going up?); dollar has nothing to fear. Both FED and ECB are 8-9% behind the curve (M3 minus actual rate). And the BoJ tightening?? seriously, 0.5% rates with massive money printing has nothing to do with tightening.
http://money.cnn.com/2007/06/07/real_estate/mortgage_rates/index.htm?postversion=2007060711
“Mortgage rates hit 10-month high
30-year fixed-rate loan hits 6.53 percent, highest since August, bringing more pain for battered housing market.
he average rate on 30-year fixed-rate loans climbed to 6.53 percent for the week ending June 7 from 6.42 percent the previous week, the mortgage finance firm said. Last year at this time, 30-year mortgage rates averaged 6.62 percent. The rate is the highest since August 10, 2006, when it averaged 6.55 percent.
Doug Duncan, chief economist for the Mortgage Bankers Association (MBA), expects mortgage rates to top out near 7 percent by the end of the year.”
Slightly OT, ort maybe not…?
Remember the San Diego UT story last Saturday about the hotel that’s to be build on the old NTC site? Well, here’s the ultimate proof that renting is cheaper than owning: The McMillan company is leasing the 17 acres for $1 a year. And now they are renting it out to the developers of the new “Nickelodeon Resorts by Marriott”. Probably for $1 a year….. no? You don’t think so?
Here’s the text in an email I received today, to bad I can’t post the pictures:
“by Pat Flannery
How would you like to own a 66 year ground lease for $1 per year on this choice 17 acre Harbor Drive waterfront parcel and rent it out to the operators of a 650-room resort hotel with a 100,000 square-foot water park? Is your name McMillin?
San Diego’s answer to Mickey Mouse is going to be SpongeBob SquarePants.
The first “Nickelodeon Resorts by Marriott” property is expected to be a 650-room resort at Liberty Station in San Diego, which will incorporate a 100,000 square-foot water park and activity deck complex featuring a variety of pools and interactive attractions. Designed by Gensler, the well-known international architectural firm, the resort is expected to break ground in January 2008 and open in early 2010.”
Miller Global Properties will build the above on the ($1 per year McMillin) site below.
Here is the official Parcel Map for the site, showing 6 parcels totaling a net of 17.12 acres. Not bad for $1 per year.
Here is the Memorandum of Lease between the City’s Redevelopment Agency and McMillin, filed on April 30, 2002.
You will notice that on page 2, par. 5 it says that a copy of the full lease is on file at the Redevelopment Agency. So I went downtown today and read the full Lease. I paid 75 cents (almost as much as McMillan pays for a year’s rent) to copy three pages, particularly the page showing the rent at $1 per year.
Most of the other pages describe the terrible things that will happen in the event McMillin fails to make his rent payment on time and how the City will recover the property in the event of his default. Normal stuff in an abnormal lease.
Here is the Redevelopment Agency’s map of the entire NTC Project. It shows this site zoned as “Hotel District”.
Finally here is an article in the U-T last Saturday. It tells a lot about the developers and the hotel business, but it “forgot” to mention the thing of most interest to its San Diego readers: “how much does the long-suffering San Diego tax-payer get out of this?” Zilch. And this is only a very small part of the infamous NTC giveaway, throughout which the Union-Tribune and most San Diego publications, remained totally silent.
This little “Hotel District” side deal will send generations of McMillin kids to college to learn what their grandfather, “Corky”, knew instinctively - how to make easy money.”
San Diego city council has always had a fascination with the McMillin family and the money they have given for “special funds” hasn’t hurt, like only one allowed to “bid” on developments etc. Giving city fathers “first pick” on new homes in the past helped but unfortunately they flipped them for good profits. Wish they kept them a while as the prices fell but they flipped and “got” out as all insiders do and the greed, pay offs keep going on with the naive taxpapers unable to do anything as their homes go down in price. Increase traffic jams, tempers, higher taxes all on the way for the “but we got the best climate in the country” city.
There have been posts on imports of food products from China (toothpaste, vegies etc), just an interesting post on how the Asian markets regard the USDA.
“U.S.D.A. takes fall for bones in U.S. beef
June 08, 2007
Ribs sent to Korea that contained bones were the result of “human error,” a United States government official said Wednesday local time in Washington.
“U.S.D.A. inspectors did not follow procedures that were established for verifying requirements and for the product certification of the export certificate. This comes down to human error,” Keith Williams, spokesman for the U.S. agriculture department, said during an interview with Brown Field News.
The mistake was made at the beef processing center, and Am-Mex, a company that deals mainly with Mexico, assembled and sent the ribs to Korea, Williams said.
Korea has agreed to import only deboned U.S. beef, but a recent shipment from the United States had ribs with bones in some packages…
Korea has banned the processing centers of Cargill and Tyson Foods where the ribs exported to Korea were processed. …The Korean government said that it has not yet received any official explanation from the U.S. government. Neither has it announced specific dates for resuming the inspections of U.S. beef.
Currently, U.S. beef imports are virtually on hold.”
Joong Ang Daily
http://tinyurl.com/ywof55
“
Totally OT, but have you guys heard the story about Chinese shrimp? Apparently it’s very common to combine chicken and shrimp farms in China. The chickens live in cages (with chicken wire floors) over the shrimp tanks. Guess what the shrimp eat? (Hint: salmonella is normally not a problem in seafood, except in this case)
Not OT at all, the problem of food safety concerns every reasonable person in every country. We worry about food from China, Europe and Asia worry about food from the US. France and Germany regard the FDA as an agency to block food exports. A vicious cycle.
Wow, if this 1500 break sticks, watch the hell out!
Statistics on San Diego North County homes sales and trends:
http://www.nsdcar.com/homedex/current_homedex/current_homedex.pdf
My favorite RE-bimbo-airhead:
http://realtytimes.com/rtmcrcond/California~San_Diego~lisablanchard
“OTE: The number of Days on Market in ALL areas of the county is trending downward in a sign that properties are selling faster.” Let’s correct that: “the homes THAT SELL, sell faster (if it wasn’t for the re-listing tricks)”… anyway, she does have some May statistics (including the North County I posted above):
Coastal San Diego - Homes For Sale and SOLD-
3850 - ACTIVE listings Priced: $169K - $20.5M UP from Apr - 3563
986 - PENDING listings Priced: $175K - $50M DOWN from Apr -1040
587 - SOLD Priced:$160K-$5.95M UP from Apr - 586
63 - Average Days on Market DOWN from Apr - 72 DOM
Central and Eastern San Diego - Homes For Sale and SOLD-
5101 - ACTIVE listings Priced: $88K - $12.5M UP from Apr - 4850
1210 - PENDING listings Priced: $89K - $3.19M UP from Apr - 1142
575 - SOLD Priced:$87.5K-$1.69M DOWN from Apr - 660 SOLD
63 - Average Days on Market DOWN from Apr - 64
Inland Northern San Diego - Homes For Sale and SOLD-
5247 - ACTIVE listings Priced: $89K - $8.5M UP from Apr - 4941
1180 - PENDING listings Priced: $95K - $4.39M UP from Apr - 1135
590 - SOLD Priced:$159K-$7.5M UP from Apr - 570
65 - Average Days on Market DOWN from Apr - 70 DOM
Southbay and Inland South San Diego - Homes For Sale and SOLD-
3543 - ACTIVE listings Priced: $100K - $16.5M UP from Apr - 3379
574 - PENDING listings Priced: $125K - $10.9M DOWN from Apr - 597
275 - SOLD Priced:$142K-$3.7M UP from Apr - 247
77 - Average Days on Market DOWN from Apr - 85 DOM
What happened to the “Spring Bounce”?
My wife receives new SD listings from a local realtor automatically to her e-mail. Last night she was overwhelmed with the length of the daily list of new SD SFRs for sale in the 4-zip-code area she tracks (and she normally is not one whose brain is easily overloaded with information…).
PACKMAN: If you’re still there. (hopefully you’ll see this)
Regarding TreasuryDirect.gov, M in Michigan wrote:
“Instead of automatic rollovers, you must schedule a new purchase for the same date (week, actually) that an old security matures. ”
Not (quite) true.
you can have it rollover, all you have to do is say that you want it to rollover.
I do this all the time. I think you can schedule it to rollover for like 1-2 years or so in advance.
HIC
(following posted up above too - before I saw this)
Presumably by “rollover” you mean that after a treasury matures - rather than credit the money back to your bank account, the money is applied toward purchase of the same treasury in the next auction (or maybe the same action it’s sold in)?
When that happens - I guess then just the gains are credited to your bank account?
I phoned my brother this morning - he’s upper mgmt for a metal roof and walls company (a big one). He sounded down so I asked howz business since he’s always so up on that. He responded “demand is down” - I won’t forget the tone of his voice in saying those three little words for a long time. He’s in the process of readjusting the company’s forecast for this year. The shareholders are not going to be happy, he says.
When I would talk to him (and other family members) about the info I was getting on this blog last year - well, I felt like I was wearing the tin foil hat - so I pretty much just shut up about it (luckily my husband is totally into it so I can rattle on about things with him).
I’m not getting any joy out of my brother’s situation (that German word I’m sure I can’t correctly spell from memory). I’m guessing I’m not the only one on this blog who is hearing from family who are going to get hurt by all of this. At least my brother’s house is paid for and he’s a saver so he should be OK. I guess.
We have a few friends who are being impacted by the bubble bursting.
We’ve also learned to keep our mouths shut. Think that’s a lesson too many of us have learned here.
Hope your brother is able to weather the potential storm. Sounds like he is in relatively good shape, though.
YouTube is developing quite an extensive repository of housing bubble videos.
For instance, here is one with a news clip featuring both Ben Bernanke and David Lereah explaining the bursting bubble to an LA NBC TV news audience. It features the obligatory realtor explanation of how “right now it’s the perfect time because it’s a buyers market right now and the buyers are gettin’ to know that…”
The newscaster’s parting shot is a beauty:
“The housing market: Once high flying, now coming in for a landing.”
http://www.youtube.com/watch?v=lEIc9Mi5K08&mode=related&search=