It’s A Different World In California
The Berkeley Daily Planet reports from California. “Million-dollar condos? In Berkeley? Yes, says Don Peterson, president of SNK Development, the company now building the nine-story-plus Berkeley Arpeggio on Center Street. Asked who might buy the units, Peterson said, ‘We are looking at the university population and the Berkeley population,’ with ‘empty-nesters’ a target demographic as well as people who would like to live in the heart of the city’s theater district.’”
“The new Downtown Area Plan now under review…was funded by the City Council after a commission majority voted to recommend it. Buildings-both apartments and condos-could still be financed at six floors or fewer. But the tall buildings, seen as a way to fulfill some of the regional housing-needs allocation imposed by regional government, could only be bankrolled as for-sale units, not rentals, the report said.”
“‘We’re talking about million-dollar condos,’ Planning Commissioner Gene Poschman told fellow commissioners. ‘Who’s going to live in them?’”
Inside Bay Area. “Homebuilders are always trying to sell their homes, but these days they have an extra incentive - beating the clock. In a few weeks, a financing option used by almost 20 percent of new-home buyers to help scrape together a down payment is going away.”
“It’s a loophole in the Federal Housing Administration rules that let builders and other home sellers channel money through a charity to help homebuyers cover their down payment. But lawmakers axed the programs - effective Oct. 1 - because almost 40 percent of FHA borrowers who went into foreclosure since October had down payment assistance.”
“‘We’re trying to let everyone know, ‘Hey this is going away,’ said Brent Urban, a salesman for Lennar Corp., referring to a sales promotion running for one of the builder’s developments in Santa Clarita.”
“At Lennar’s Esperto community in Santa Clarita, north of Los Angeles, the incentives were tied to six, finished row-style townhomes priced in the mid-$300,000 range. Buyers have to be able to close before Sept. 11, said Urban.”
“While many builders are continuing to lobby for the down payment assistance programs to be reinstated, many have changed tactics and are promoting the temporary tax credit for first-time homebuyers, which was also part of the housing stimulus law passed last month.”
“But the clock is also ticking on this deal. The tax credit of up to $7,500 and expires in less than a year.”
“Some builders are exploring ways to give buyers some of their tax savings before they file their taxes. ‘If you can come up with some way to monetize it ahead of time, it could help to offset the loss of that down payment assistance,’ said Nishu Sood, a Deutsche Bank analyst.”
“Ultimately, however, it’s going to remain difficult for a builder to fully overcome when a buyer simply doesn’t have enough cash to make their down payment.
“‘You can offer lower rates, you can offer further incentives,’ Sood said, ‘but if a homebuyer is going to have trouble coming up with a down payment, that’s difficult to offset.’”
The Napa Valley Register. “California New Car Dealers Association statistics show that in the first two quarters of 2008 new car sales statewide slid 18 percent compared to last year. The DMV data shows some Napa County dealers have increased sales as much as 21 percent so far this year, while others are down as much as 40 percent.”
“‘Business certainly has been challenging, as it has been for all dealers this year,’ said Kevin Massie, owner of Napa Ford Lincoln Mercury, citing the down housing market and shaky consumer confidence.”
“‘We are seeing people that have challenged credit … (or) foreclosures pending’ said Bob Kleis, general manager of Jimmy Vasser Chevrolet-Toyota. ‘We are seeing more cars for sale in repossession wholesale auctions.’”
“‘The mess in the home industry has trickled down into the car industry,’ said Napa Nissan owner Vince Compagno.”
“At Napa Ford, Massie said, ‘We have customers that want to get vehicles but are in the process of losing a home.’ The number of buyers in distress ‘is much greater than this time a year ago.’”
“Why would someone in financial trouble buy a car? Even if people are moving or giving up on home ownership, he said, ‘They still need reliable transportation to get to work, school and church.’”
The Ventura County Reporter. “There are 15,000 to 20,000 rental units in the city of Ventura. The California Apartment Association (CAA), a statewide rental housing trade group that tracks things such as shifting rental costs and residential transiency, determined at the end of the second quarter for 2008 a 94.1-percent occupancy rate throughout Ventura County.”
“That leaves a near 6-percent vacancy rate, which explains some For Rent signs that never seem to come down.”
“‘The rental market in Ventura County is relatively flat over the last year,’ said CAA Deputy Director Eric Wiegers. ‘The trend is really flat. No real uptake in rents.’”
“Much like the price of oil can be correlated to record high fuel costs, could there be a decisive factor that may cause rental costs to lower themselves in Ventura? There is when considering a shaky real estate situation.”
“‘The only reason I’d suggest prices might come down is, it’s tied to this whole foreclosure mess,’ said Wiegers. ‘There are some markets where some houses being foreclosed upon are being bought by investors and putting them on the rental market.’”
The Globest. “If you’re looking for the bottom of the economic downturn, you may find it here in the Inland Empire–it’s just that the ‘when’ is another matter. Experts voiced some bleak near-term outlooks Wednesday at the third annual RealShare Inland Empire conference at the Ontario Convention Center.”
“‘There’s no nice way to spin it,’ keynote speaker Richard Green, director of the USC Lusk Center for Real Estate, said of the local economy. ‘The jobs picture in San Bernardino-Riverside County right now is not particularly good. People want to know when are things going to bottom. Will we have a ‘V’ or ‘U’ in terms of the recovery?’”
“There has never been, until now, a decline in the median home prices nationally since the Great Depression, Green pointed out. The median income is falling and ‘financial institutions are in an environment of fear,’ he added.”
“Ppanels throughout the day included sessions on the capital markets and how investors are getting deals done in today’s climate…what it takes and costs to finance deals.”
“G. Ryan Smith, a senior VP with Newport Beach-based Buchanan Street Partners, said that ‘It used to be if you had a heartbeat, you could get a loan. It’s a different world than it used to be.’”
The Daily Bulletin. “In the past, Juana Recinos sold up to 15 homes a year. Now, she can’t sell one. ‘Optimistic? Well, let’s just say I took a part-time job in addition to trying to sell the five homes I have,’ said the real estate agent. ‘It’s hard to sell a house, and the lenders are making it difficult to do so. I’m beginning to think even though it’s just speculation that lenders are making money off of waiting and wasting my time.’”
“Calling the market ‘a virus,’ Recinos said she doesn’t think it’s going to get any better and doesn’t expect to stay in the real-estate business for long.”
“Recinos’ biggest fear is losing another potential buyer on the short-sale home listed for $290,000 at 10127 Vernon Ave., Montclair. The home was on the market in December for $450,000. Recinos had a potential buyer within a month. The bid was $350,000.”
“‘But those people backed out last month because the lenders never called back,’ she said.”
“Now, someone is interested in the new price tag, but once again Recinos is left to play the waiting game. ‘I’m really beginning to feel they don’t care because I keep on waiting and calling and then I get an excuse of, ‘Sorry we lost the paperwork. You have to resend it,’ or, ‘We didn’t receive it,’ and I’m back to where I started,’ she said.”
“Recinos said she and her husband have been cleaning up the vacant house ‘in preparation for a foreclosure.’ If the lenders don’t call back in three weeks, the home will be foreclosed on, and Recinos said she expects the price to drop by as much as $50,000.”
“‘If the market continues to go in the direction it is, (the price) will be lower than that,’ she said.”
“Recinos said she knows her prospective buyers are getting tired of waiting. ‘I’m afraid they’re going to give up on this home,’ she said, ‘and I’m scared all the work I’ve done in the last six, seven months is going to go out the door.’”
“‘We’re talking about million-dollar condos,’ Planning Commissioner Gene Poschman told fellow commissioners. ‘Who’s going to live in them?’”
Umm…no one?
If in so many decades, barely a condo tower has been built in Berkeley, what has changed to make it now a viable option?
This was also done in Sacramento, where a condo tower was built in the early 80’s. After unsuccessful sales, an investor bought a vast majority for rentals.
Then the building was sold to be converted to condos now…just laughable. At they have the typical pergraniteel in them.
‘Some people you just can’t teach’.
It is just amazing how the same people that are too good to rent an apartment will pay hundreds of thousands of dollars to buy an apartment, errr, I mean “condo”.
The California Condo-er - a stupid but nowhere near extinct bird. But it’s definitely become more endangered every day.
“typical pergraniteel”
Love the word, but what’s the “per” part stand for?
pergraniteel:
source:
http://patrick.net/wp/?p=63
“Pergraniteel™: Pergo fake wood floors, granite countertops, and steel appliances. Coined by SJ_Jim, an amalgamation of today’s most popular home “improvements”, which supposedly allows sellers to command a 200% premium above what they paid for the place.”
Pergo, a faux wood flooring product.
We had it in our previous home.
Found out that it has a nasty tendency to bubble up if any water gets in contact with it.
Never would we have that in any house again.
(BTW, I heard that bamboo flooring has a nasty tendency to fade in sunshine, leaving behind nice furniture spots)
SMF,
My daughter was helping us move in ( and as is the style with the 20-something gals ) she wears flip-flops no matter how cold it is! Well as they’re soft rubber they also imbed a lot of gravel etc. and you could see a scuff mark from the minute she walked in the door!
Hard to get mad, she was carrying some heavy stuff ( and wasn’t exactly getting paid ) but unlike REAL hardwood flooring where scratches “add character” this looked like a “key’d” car finish. Absolute cr@p material.
Sorry to hear all that bamboo will have to come out when people figure it fades like that? Good news is, it’s s-u-s-t-a-i-n-a-b-l-e.
Flip-flops, another plague on humanity. How many orthopedic surgeons will make a fortune because of those stupid things?
Linoleum is sustainable. Bamboo is trendy. Huge difference!
“Flip-flops, another plague on humanity.”
Do you realize how many AK-47 toting dark-skinned thugs in chrome sunglasses around the world rely on flip-flops as their first choice in combat foot-gear?
What the . . . ?
IAT
“Flip-flops, another plague on humanity. How many orthopedic surgeons will make a fortune because of those stupid things?”
Spoken like a true New Yorker. You are assuming that one actually has to WALK anywhere in Los Angeles, which we don’t. What else are we supposed to wear when it’s 70+ degrees half of the year? Oh I remember from my east coast days…loafers or topsiders with no socks (shivers…..)
I wondered if it was “pergo”, but I definitely never thought of that as part of the “prestige look” of the bubble–ala granite countertops and stainless appliances.
It’s been marketed as an upscale alternative to real wood flooring, supposedly easier to maintain, but like others have posted, it’s more like naugahyde– aka pleather– where the scratches expose the fakery beneath.
Oh, and also don’t forget about the ‘unmentioned’ problem with marble.
You see, that material is porous, which means that even the acid from a spilled apple drink will stain it…permanently. Of course, the ‘professionals’ that sell it neglect to mention this.
You have to seal it well or else.
Over time, because Marble is softer than granite, it shows wear from either the elements or treading upon it. You can observe this in worn castle steps and headstones, though this probably isn’t a consideration for new construction, since most McMansions won’t be around long enough for this to be a problem.
Oh and Granite has that nasty radon issue. My husband supervised in a granite fab plant (for major builders Lennar, KB, etc)for nine months. It still amazes me people think this stuff is the sh!t for counter tops. Whatever. Granerica you can have it….
One of my favorite photos I have ever taken was of the sters of the Louvre. Definitely stone, but marble???
sters should be “steps”
The pottery and hemp basket sellers along Telegraph Avenue surely would love such condos. So would the duplex refugees along Ashby Avenue, close enough to Oakland where punks throw beer bottles at you after dark just for fun.
Now, er, how much are those condos?
Anyone know if the condos have a view of People’s Park?
You know if those condos sell, it might be worth my while to hire a nanny for the kids so I can work as a panhandler in front of those condos a few hours a day.
At least the condos will provide SWAT snipers with a nice vantage point.
to clarify, I mean snipers for if anyone goes loco.
“‘We are looking at the university population and the Berkeley population,’ with ‘empty-nesters’ a target demographic as well as people who would like to live in the heart of the city’s theater district.’”
Oh, that is priceless. (The comment, not the condos. The condos are worthless). Theater district? In Berkeley? PUH - LEEZE!!!
You can’t walk one block in downtown Jerkeley without being hit up for money, having to step over/around past someone passed out, something puked up, or something pissed on… and the downtown is only about 10 blocks long. Somewhere in there are a couple of theaters, but a “district”. The entire downtown isn’t large enough to have a “district”.
But what about the tree-sitters and university protestors? Having a nice view of those has to be worth something!
Condo towers and living downtown are pretty sexy. There was probably a 7-Eleven down the street, wasn’t there? Banners on light poles?
Baltimorgue should get in on this stype of stupidity - condo towers in the slums, and we have plenty of slums. We’ve got the blinking, blue lights on poles to provider target practice to the local punks, but we don’t have as many light poles anymore since the local thugs steal them for the scrap metal. But, hey - we have 7-11’s, so Baltimorgue must be classy! Hahahah!
There was a developer who built a bunch of condo buildings around University, but that worked because the locations were carefully chosen and the construction was kept to the basics in order to keep costs at rock bottom. Even then during a boom it took a while to clear all the units, so there is a market there but it takes great care to deliver the goods to it.
“Why would someone in financial trouble buy a car? Even if people are moving or giving up on home ownership, he said, ‘They still need reliable transportation to get to work, school and church.’”
Toots, all of the above can be accomplished:
1. On foot
2. On a bicycle
3. Via public transportation
“‘The mess in the home industry has trickled down into the car industry,’ said Napa Nissan owner Vince Compagno.”
Which is just the opposite of how the insanity in the home industry had trickled UP into the car industry from 2002 - 2007. Ain’t it funny how these things work out, twinkletoes?
Okay, HBB-ers, the pejorative terminology contest is on. I’ve weighed in with “toots” and NYCityBoy’s tossed his hat into the ring with “twinketoes.”
Let’s have some competition!
Numbnuts
A three pound blood clot where their brain should be.
how about…Homeowner!
Douchebag. It’s not very original, but it’s got such great utility.
I submit my old original “hat knocker”.
I’ll throw in dog-dick.
Scroat.
Or smegma.
How about my Housing Bubble Blog favorite……. ASSHAT
Ok, how many people here are also on http://www.hotchickswithdouchebags.com?
Some of these pejorative names look real familiar.
I have my own personal stat that I informally track……the “I paid that much for my first house!!!” ratio.
Historically, the House/Average new car ratio is around 5 or 6 to 1 (was around 6-1 in 1967 when my folks bought their first house, around 5-1 in 1981, and in 1999-2000).
Currently, in supposedly “one of the most affordable cities in America”, the ratio is 9-1.
“Historically” = my unscientific observations
Conclusions:
-Locally, at least a 30% haircut from 2007 asking prices for houses.
-Assuming HELOCs were as rampant here as everywhere else,
“luxury” cars are going to be fairly rare again……say goodbye to Heather’s BMW or Lexus for graduation, say hello Honda Civic or Chevy Cobalt.
-The base/stripper pickup or Suburban will become the norm again, purchased by people who genuinely need the hauling capacity.
Gulfstream,
While you’re being generous..?
Over the last several days it’s occurred to me that “the bubble” has created an entirely ‘new class’ of criminal? I mean you got yer’ strong-arm robbers. Purse-snatchers and smash and grab guys. Your basic white-collar embezzlers now we have a new breed.
I’m really not sure what dub this passive-aggresive opportunist HELOC-burglars but if anyone comes up with names, I’m all ears!
This is insane.
Auto-Neurotic-Assetfixiation
‘We are looking at the university population and the Berkeley population,’ with ‘empty-nesters’ a target demographic as well as people who would like to live in the heart of the city’s theater district.’”
Yep, that takes me back to my Berkeley days! In 1985, I paid $275/month to rent a nice large one bedroom apartment with a fireplace. I could walk to North Berkeley BART and read the paper on my way to work. One of the greatest gifts of that period is that I am now an adult and thus, by definition, not dumb enough to pay a life savings for a condo or even a house, especially during a time when prices are dropping like a rock! I love it! The ‘Berkeley population’ will pay $1M for a condo. Those who are so infantile they would rather flush away their life savings than defer gratification. I Love it!
Seriously, if anything will bring back rent control in a serious way, yahoos with million $ condos will. Bring em on!
If my circle of friends, family, and acquaintances is any indication, most empty nesters will just stay put. After all, many of them have paid-for nests. So, why would they move back into mortgage-ville?
Empty-nesters like to stay close to where their family is.
Well there, Slim. I am damn close to being an empty-nester - as are nearly all my friends. And of the whole bunch, made up of singles, married’s and other arraingements not a one has ever mentioned moving. They may talk about travel and extended stays with their children - but for the good lord! why would anyone with close-to-zero mortgages, finally a little cash in the bank, most of your hair and teeth, and still possess the need for some midnight slammin’…….why would you buy a $1Mil condo in Beserkley or ANYWHERE???
It makes as much sense as buying 200K ‘travelhomes’ for vacations. Absolutely screw that!
…can I ask “all right, who let the goof gas out?!”
The only place I can think $1M condos would possibly work is NYC, overlooking Central Park.
In which case they wouldn’t be $1M condos but $2-5M, I’m guessing. How much do condos w/nice views of Central Park go for, NYC boy?
“After all, many of them have paid-for nests.”
With Prop 13 protected low tax rates to boot, that’s why my retired in laws refuse to move when they can spend the tax savings on world wide travel. You’d have to be demented to spend that kind of money on a condo as an empty nester when you can simply remodel what you have.
We became empty nesters in 2005. We moved in 2006. Why?
We left no forwarding address so the kids could not move back in.
Actually, i sought a transfer so my company would pay the selling costs of our bubble-priced home. We’ve been renting ever since (and transferred again early this year.) This mobility thing is really working for us.
Back in 1987-88 when I had just graduated from SF State, a friend and I rented a two-bedroom apt in North Beach, on Union St. between Wash. Sq and Coit Tower. As I recall, we each paid $325 per month ($650 total).
Nobody in Berkely has a million bucks.
Berkeley, I mean. I know, I know.
Are you just baiting? Berkeley has a lot of famous tech and biotech developers that have made a lot of money. That is why the hills above the university have so many big, new places in the $1.5 million and up range. Deciding Berkeley is poor based on the most visible ruffians makes about as much sense as deriving cattle count from hat size.
The real problem is that anyone with that money is more likely to live close the the Claremont Club or over the hill in Wildcat Canyon. Even Fourth Avenue or Emeryvill probably have more snob appeal than downtown Berkeley at this point.
Please name some of those “famous tech and biotech developers that have made a lot of money” who live in Berkeley.
I think Berkeley money is older than biotech development. Thus, I don’t know them by name, and neither do you. And, that’s the way they like it.
IAT
Okay, I have made the plung and put an offer on a home for 150K in Riverside (Historical district); previosly sold for 475K in 2006. I know it’s a stupid move and I would pay less if I would wait another 6 to 12 months, but my wife is preggers and wants to nest. I worked out the monthly payments (including taxes & insurance) on a 30 year fixed and they’ll be $200.00 less a month than if I would keep renting my apartment. We have been waiting for the last 5 years and I have finally lost the war. The offer is pending, but the seller said it was the highiest offer they have had since the house has been on the market. Hmmmmmmmmm… I want to throw up!
“plunge”. Plung sounds like a great word for what you do in a forest.
Now, take a deep breath and git a grip. There’s only two questions to ask yourself: Can you afford the note? (That seems a big yes) and are you committed? (with a pregnant wife you damn sure better be and long before now). Seems to me your biggest worry may be that you won’t get the house. Like they, if momma ain’t happy, nobody’s happy.
On balance, this price seems reasonable. $200/mo in payments = tax and insurance. A potential savings on income taxes from interest payments and a $7500 1st time buyers check. Plus some goody baskets from any still existing homeowners. Hopefully with some beers. lol
Don’t throw up, you’ll be needed for spit-up clean-up 24/7. You’ll be OK, breathe deep and drink good beer….
Empty Nester in Place
RCC Tiger,
Well “I” don’t have any problem with it! Good for you. Your taxes should be lower as well. When we bought our first home in the late 80’s ( after considering your closing/moving costs ) it was cheaper to buy a home after the first year. Good luck to both of you and congratulations!
Any possibility that you can go out for a loaf of bread..and never come back?
j/k
Diapers aren’t that heavy on your bike. You might want to use the bike and save money for that ‘exercise’ and fresh air.
Congrats!
150k is cheap. Is this a house or a condo? Why is it so cheap? Most houses in Riverside are selling for more, aren’t they?
I think the more important question is how safe is your income?
If you have to find work, what are the prospects near Riverside?
I concur that an expectant wife trumps all things. Pull the trigger. Brush up the resume. Keep track of the local job market for your skillset.
When the SHTF any employer left standing will favor hiring or keeping someone with a stable domestic situation. A $150k mortgage makes you stable compared to other basket cases looking for work and a roof overhead.
If the economy gets to the point where a household of 2 and a new born can’t manage a $150,000 mortgage, we are all in deep dew dew.
Your situation is sustainable so you won’t regret it.
Didn’t want to make you more sick thinking about your job, but you have to plan for what if’s?
RCC, don’t worry, we are not going to throw you out of here. $150K is OK, you are not pricing us out of the future market. Hmm, now when is Morro Bay going to get down to $150K? (It should; I get furnished temporary rentals there for $1500/mo.)
“‘You can offer lower rates, you can offer further incentives,’ Sood said, ‘but if a homebuyer is going to have trouble coming up with a down payment, that’s difficult to offset.’”
Hey, Rip van Winkle! Have you slept through the last few years? What do you think got us into this mess?
I’m sorry, but people that don’t have two Kruggerands to rub together have no business buying a house.
I’m currently in the midst of defending this position with a bunch of investors I know. They all want this portion of the bill removed. What’s hilarious is they wail about government intervention, except when it directly affects their business. Hmm…
I shoulda said, “except when it positively affects their paycheck.”
What was that quote again?…………Oh yeah:
“It is difficult to get a man to understand something when his salary depends upon his not understanding it” - Upton Sinclair
That’s the GOPthink. They wail about welfare mothers while they demand their gov’t hand-outs. I guess bidness trumps life.
It’s not a party thing. I’m a Repub as most of you know. I’m also a tenant. That’s the main thing. (Was a homeowner but y’all blogged me out of it mid-06.) Therefore I can consistently oppose govt down-pay assistance, which I also opposed when I was a homeowner. Guess I was a tenant at heart even when I was a HO.
“But the clock is also ticking on this deal. The tax credit of up to $7,500 and expires in less than a year.”
We need MacGyver to diffuse this unaffordability bomb from going off. Give him coffee, a phone, and a list of 100,000 suckers. He should be able to keep this charade going for another year.
MacGruber!
http://www.eveningtalk.com/2008/05/18/saturday-night-live-mcgruber-son/
Isn’t this the tax credit that’s really an interest-free loan from Uncle Sam? And it has to be repaid over 15 years?
Whatever it is, it has a means test. I don’t pass and I don’t think you would either.
Listen up oskar, that is just plain wrong. McGyver is awesome and would not involve himself in such nefarious activities.
The only thing wrong was that MacGyver hairdo. Business in the front, party in the back. Simon LeBon would have been proud.
“Million-dollar condos? In Berkeley?
Moooooooo!
What’s the main North-South drag through there? All I remember upon visiting Berkeley last year (except for the co-eds that I’M SURE didn’t exist when I went to college) was that west of this main drag, toward the highway, were blocks and blocks of run-down housing.
Prolly University Ave.
You are right about many homes/apts. nearby in East Bay.
Squalor that makes Miami’s slums look welcoming.
‘What’s the main North-South drag through there? ‘
San Pablo is probably what you remember. It was a ghetto when I lived in Berkeley 22 years ago.
Baaa ba ba ba Bwahahahahahah
They could charge 3 or 4 of those million dollar condos on McCain’s credit card.
He can’t keep track of these things and he’d never now the difference
Damn. I haven’t seen a Berkeley Farms commercial in a quarter century. Thanks.
Know what you mean AuAgPb. I miss those commercials also. Cows in Berkeley? Moooooooo
“We are seeing people that have challenged credit.”
Challengeder: Roger, go at throttle up
Ka-boom!
It’s a world of foreclosures
A world of tears
It’s a world of dashed hopes
And a world of fears
There’s so much that we share
That it’s time we’re aware
It’s a housing bubble world after all
started swaying my head to and fro on that ditty.
Good stuf,Lad.
Yes, that song makes me feel happy, even when laden with housing-bubble doom. As a matter of fact, housing-bubble doom makes me feel happy too. Kinda weird, huh?
Would be fun to sneak into the “works” at Disneyland and put a bunch of “For Sale or Rent” signs on the igloos and castles and yurts.
Yeah well I just signed a contract to sell my Mom’s home for $85,000…. 3.5 acres, huge pond, one bedroom house 16 years old, 1100 square feet.
Problem is, it’s in Appalachia. Which can also be a good thing in these times, poorer people in the country tend to look out for one another…. really good salt of the earthers.
You want affordable? Figure out a way to self-employment and head for the boonies. Take the Mother Earth News approach w/out the holier than thou crap. I caught my first son in ‘86 in the house (OK, big cabin) I’d built w/out debt of any kind or electricity for that matter….
What stories your first son must have to tell. Does he brag about being born in the house that Dad built?
Yeah, he does…. a junior in art school at RISD in Providence. And I’m proud of his accomplishments, too…..
I walked home from work today and I got to thinking. A big question on the minds of the people on this blog, and many other people, is how society will react to the hard times that we all know are coming. Many of us believe that stocking up on ammo and MREs is the best way to go. It will be a Lord of the Flies moment.
While walking through the streets of Old Manhattan I thought back to something that took place in 2005 when I walked to and from work a few times. It was the strike by the TWU (Transit Workers Union). They struck thinking the City would whine and wail and gnash our teeth. But a funny thing happened. All of us Whos here in Whoville did something quite different. We banded together. People that needed rides, got rides. People that needed to walk, walked. It was actually one of my favorite times since I lived here. I wished that they had stayed out on strike longer.
The City didn’t turn into the Lord of the Flies. It turned more civil. When everybody knew they had to rely on themselves, and each other, people were actually better. It reminds me of growing up in the 70s. We didn’t really notice or care that we didn’t have a whole lot. Nobody else did either. There weren’t designer clothes on every kid’s back and Lexus SUVs in every driveway. We lived with what we had, and although people still competed with each other, it wasn’t the soulless competition we see now.
Maybe I’m wrong but maybe this thing won’t degenerate to our worst fears. Maybe the Fed will f-ck us and we will say, “do you know what? We really didn’t need all of that consumerist $hit anyhow.” And then what will they do? It will set them back to realizing that we didn’t need them, just like we didn’t really need the TWU. And then what will the Masters of the Universe do without the little shopping drones they have come to count on? Good night, all.
Housing and finance are significant, but still only a slice of the economy. People will still need to eat, clothe themselves, buy machines for processing necessities. The best investment is in productive people. The small companies that are the seed grain of our society are not traded on big exchanges, so one has to go out and get involved directly. This is going to get really ugly before it finishes, but society isn’t going to stop. Putting money and effort into hoarding and disconnection could be the worst possible move.
We had fun after Hurricane Wilma in Florida, barbequing in the dark. But if the power was out for more than about 3 days, things might have gotten pretty ugly. Seems that some of the who’s in whoville didn’t even have a day’s worth of water stored up.
How did your wife feel about giving birth in a cabin with no electricity?
I got it real fast, but still no flush toilet!
What’d you catch him doing in the log cabin?
Leaping from his mother’s womb, bloody and with full-on colic.
Meadows, where in Appalachia? I’m sort of fond of West Virginia, but will look elsewhere if the vibes are right. Exactly my intention.
Jane,
Just over the border into NY State from PA. Google a map of Appalachia. Mom’s house was in the middle of the upper bulge where it pokes into NY State.
She was born in Salem, West Virginia, in 1928.
What a character. I miss her.
“Will we have a ‘V’ or ‘U’ in terms of the recovery?”
I’m thinking more like a “L” recovery.
Z’d up
Zed’s dead.
“Say what one more time mother’f'er”
Is what a country, do they speak english in what?
I’m thinking a backslash recovery, \
you beat me to it, i was thinking backslash
I like that L recovery. L for Looooooooooong way off.
Great Caesar’s Ghost!
The Berkeley Daily Planet reports from California. “Million-dollar condos? In Berkeley?
It’s a burden, it’s a pain, it’s $uperman
An Alt recovery.
They will try to orchestrate a Ctrl recovery.
Certainly not a Home recovery.
Hopefully not an End recovery!
And, for the tin-foil in all of us, we can go ahead and endulge in a Caps Locking throughout the fiasco.
For the unbelievers in the group, I’d like to point out that the “school fetishists” really dig Berkeley (Albany and Piedmont). Let me direct your attention to another article in the same edition of the Daily Planet. Eventually even these Fortress areas will fall (some condo projects have already taken hits), but never “misunderestimate” parents of school age children.
Revamped classrooms, management changes and a record enrollment rate for kindergartners marked the first day of Berkeley Unified School District’s new school year on Wednesday.
District officials are projecting that around 720 students will be starting kindergarten this year, up from the 627 in 2007-08.
In order to make room for the record number of kindergartners expected to join school this year, Berkeley Unified converted four classrooms—two at Malcolm X Elementary and one each at Rosa Parks and Cragmont elementaries—into kindergartens, increasing the total number of kindergartens in the district to 36…
“We needed the space because we have more students,” Martinez said, adding that the district had not yet carried out an investigation about what prompted the sudden rise in enrollment.
Sixteen injured in East Village (downtown San Diego) walkway collapse:
http://tinyurl.com/6nvkhd
“A block-long wooden pedestrian walkway collapsed at an East Village construction site during the busy noon lunch hour Thursday, injuring 16 people, three critically, authorities said.”
“Medina estimated about 20 people were inside the walkway, designed to protect pedestrians from debris falling from the construction site. She said there was momentary chaos as people screamed and ran.”
“The project under construction, called “Studio fifteen,” will be 275 units of affordable housing, according to a sign at the site. It is scheduled to open in spring 2009.”
I hope these “affordable” housing units are constructed better than the structure that was supposed to protect pedestrians.
Headline: Studio 15 Attacks 16 Pedestrians
Million dollar condos in Berzerkley? WTF. If I had, and was willing to spend $1M in the Bay area, I would take a condo in a nice happenin’ part of San Francisco itself, or a much nicer, spacious home in a nice suburb city like Walnut Creek, San Mateo, San Ramon, etc. But I passed on all, and LEFT CA.
Here’s a story about a lady at who is working on her own little corner of Stupid right now.
Around September or so of last year, I had lunch with a new project manager here at work. On the way to the restaurant, we conversed on housing. She had transferred over here from Boston, was renting a temporary apartment, and had her house in Boston up for sale. I advised her to sell her old house as quickly as possible, and to rent for a few years before buying anything in the Bay Area. She agreed. She thought it was “obvious” that house prices would go down here, but she doubted they would ever go down in Boston (because it’s different there, you know).
Well, I had lunch with her again today. Guess what? She just moved in to her brand-new 3-story townhouse of 1600 square feet, for which she paid 3x the price of her Boston house. House in Boston is still up for sale. She is currently asking less than what she paid for the house, but only gets “lowball” offers, so she won’t accept any of them. Boo hoo. She has now changed her tune. While Boston was once the “different” place (i.e., the place where she lived), it has now been replaced by the new different (Silicon Valley, where, once again she lives).
What a moron. She has already shown herself to be a bungling and politically motivated project manager, so I hope she loses her shirt. I swear, the people at this company have a long way to go before they finally realize that I am the smartest person here, and make me the owner (LOL)!
B V, to be the owner you don’t have to be the smartest person, just the richest person.
Anyway if the company is full of morons like the lady you’ve just described, you will soon be able to rent the whole company for next to nothing!
“Ultimately, however, it’s going to remain difficult for a builder to fully overcome when a buyer simply doesn’t have enough cash to make their down payment.”
“‘You can offer lower rates, you can offer further incentives,’ Sood said, ‘but if a homebuyer is going to have trouble coming up with a down payment, that’s difficult to offset.’”
Why do they continually refer to people with no money/down payment as “buyers”.
Right. Have I mentioned the Investors in SW Fla who phoned me on Sunday saying they were in the process of trying to Take Advantage of all those foreclosures and of That New FHA Money? They said You Can Do So Much Better Buying In Bulk. They are talking about buying a large bunch of $75K 3BR REO houses in Cape Coral and (get this) flipping them. I said I supposed they had several hundred thousand of their own money to put into the deal. The answer was long, but the short answer was no. In fact it wasn’t clear that they had any money at all. Lotsa stories about the projects their money is tied up in. It’s my money they’re after. I said I might lend 80% on one such house at 10% interest for 10 years, and see how it goes. They seemed interested in this. What the heck, if the loan goes wrong I have a winter place for $60K.
anyone know a country that’s not printing money ?
http://biz.yahoo.com/ap/080829/japan_economic_stimulus.html