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August 22, 2007
Wall street bonus pool
http://www.bloomberg.com/apps/news?pid=20601103&sid=a4qWlWyw2C0I&refer=news
Yeah, Manhattan is insulated, wall st already locked in their bonuses not just for this year but for next year as well..
NOT!
I'm tired of brokers lying in the comments attached to any front page news stories that hint even slightly about a declining market.
They are lying for the sake of avarice. Naked greed.
You know what: I fervently pray that the ones that pump the market here, or face to face to their clients, sit in their little open houses, sunday after sunday, with nothing but rubber-necking time wasters asking dumb questions, until their bank accounts are drained.
Comments
Please tell me why you would think the "brownstone brooklyn" real estate market would be supported by Wall Street types. Most of the housing stock--most--is far too modest to appeal directly to the rich, or nouveaux riche, or bonus-rich (or children thereof. And even if you go to the secondary effects of "the rich" buying up Manhattan, you need to go pretty far to get an effect on brownstone brooklyn; you probably need to pass through the suburbs.
So, I agree with you stated hope. But also that the market here isn't going to be greatly impacted by a Wall St. downturn (if that ever happens).
Posted by: BrooklynCouch at August 22, 2007 7:25 AM
I dont happen to think the NY market is totally insulated. That being said, a 5% decline from record breaking bonus levels is hardly going to completely paralyze brooklyns real estate market.
Posted by: Mrs. Limestone at August 22, 2007 8:40 AM
Wow, did you put the wrong spin on that article. Seriously, did you read the whole thing? Did you read any of it? Or just the headline?
Amy
Posted by: guest at August 22, 2007 8:59 AM
This is quit serious. Basically, everyone who has been around the street for a while remembers 2001-3, when roughly 30% of the top firms were laid off, so we tend to avoid overleveraging.
Wife and I make 500-700/yr, and have savings of about 1400. We pay 40k/yr in rent for a large and lovely apartment in brooklyn. Prices have gotten way out of line w/r/t rents, but rents can't go too much higher, as, except in super-luxury buildings, you can't price-discriminate between the rich and the merely well-paid, and rents ultimately reflect salaries. We would be idiots to buy at current prices.
The current real estate market combines an asset (the house) with a quickly depreciating set of luxury goods (trophy kitchen/bath, starchitecture, etc.). History shows that the premium for the latter quickly evaporates once the next hot trend rolls in.
Besides, with Bloomberg being forced out in 2008 and taxes likely to rise, the end is in sight.
Posted by: guest at August 22, 2007 10:00 AM
Why do you think this is the proper forum for this topic? Everyone should just ignore this poster. They post about 3 or 4 times a week for some insane reason.
Posted by: guest at August 22, 2007 2:02 PM
Dear Brooklyncouch,
We're here. Maybe you just don't recognize us.
Posted by: guest at August 22, 2007 2:25 PM
2:25: may I have some of your wealth please?
Seriously, I'm talkin generalities, not exceptions thereto...
Posted by: BrooklynCouch at August 22, 2007 2:30 PM
"Besides, with Bloomberg being forced out in 2008 and taxes likely to rise, the end is in sight."
Now, THAT is one of the one truly scary thing I have seen on this web site. Maybe we can get a carpetbagger fiscal conservative to set up tent and run for mayor...how about it?!
Posted by: BrooklynCouch at August 22, 2007 3:32 PM
Brooklyncouch - you are seriously out of it if you think there aren't wall streeters in "brownstone brooklyn". Who do you think are buying these 2mill+ buildings? I have a small pool of acquaintance in the neighb (cobble hill/CG) and I happen to know 4 investment bankers (and I definitely don't hang out with a banking crowd).
Posted by: guest at August 22, 2007 5:33 PM
10:00 back.
Yes there are plenty of WS types in brooklyn; there always have been, and probably always will be.
The question (in my mind) at least is to what extent the buildings will hold their value -- right now there is tremendous cachet to owning a brownstone with a million dollar renovation. 20 years ago, the thing to own was an UES Louis XIV dining room in a giant apartment, or a 'Euro' styled condo in a gold and smoked glass building.
Tastes have changed.
The brooklyn market frothiness may be an outgrowth of the manhattan market, but NYC lost 1MM people between 1970 and 1980, and, given a recession, increase in taxes, machine government, or another terrorist attack, this could happen again.
Paying 10x the average house price for a house that is the same size as the average one seems excessive in an area where the average income is only 1.5-2x the national average, and the progressive tax rates eat more of it.
Posted by: guest at August 22, 2007 6:34 PM
Why is everyone supporting this thread by still responding? New topic, please. Who cares if someone comes in to buy an overpriced brownstone. When they default, we can buy it for cheaper later. I don't even see the point to this thread. It has no significance.
Posted by: guest at August 22, 2007 7:17 PM
Um, because we are not all vulturous and greedy. Because some of us know that defaults are a problem for everyone and don't want to see our neighbors out on their asses.
That said, the banks misguided decisions aside, what the hell were the week-to-weekers thinking when they walked out of the bank with a house for no money down. Did 'too good to be true' not enter their minds?
Posted by: guest at August 23, 2007 1:23 PM
Has anyone thought about what the lack of tax revenue from the big bonus crowd will do to the rest of the city?
Posted by: guest at August 23, 2007 1:24 PM
2:30- I'm sure that you already have some of it.
Posted by: guest at August 23, 2007 1:26 PM
Why would you care if your neighbor overextended him/herself, 1:23? That's their own problem.
Posted by: guest at August 23, 2007 2:31 PM
Because I like people and I don't like to see bad things happen to others. Do you really think that it's their own problem? On the surface, I know what you mean and take personal accountability very seriously. I also take love, compassion and empathy very seriously. When others suffer our whole society suffers, doesn't it? And I'm not even a Democrat. Even from a selfish perspective, if your neighbor's overextended won't it somehow end up coming out of your pocket?
Posted by: guest at August 23, 2007 3:16 PM
I'm really confused about why a couple who claims to earn $500-700k per annum is complaining about brownstone Brooklyn property values. Aren't you among the (very) few for whom a $1.5 - 3.0 purchase price is still quite affordable? I suppose by the same token you can also easily afford a $40k rental. In which case why are you even commenting? What am I missing here?
Posted by: NeoGrec at August 23, 2007 3:41 PM
Regardless of how much money you make or whether you can afford something, you can still have an opinion about whether housing prices are high or if it's a good time to buy. Even people with money want to spend wisely.
I am missing something too though from that post. How could the savings be so low? Ah, it doesn't really matter. I have no idea why the guy disclosed so much information. It didn't add anything to his point. And I'm not really sure what his point was except that it's a bad time to buy.
Posted by: guest at August 23, 2007 4:13 PM
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