A Rising Tide for Brooklyn Economy?
Brooklyn’s doing just fine, if you believe yesterday’s bullish article in Crain’s: In the first six months of the year, almost 25,000 borough residents found work, more than 200,000 square feet of commercial space was rented and retail rents began to stabilize. Why? Brooklyn’s such a desirable place to live now. Certainly, for anyone under…
Brooklyn’s doing just fine, if you believe yesterday’s bullish article in Crain’s: In the first six months of the year, almost 25,000 borough residents found work, more than 200,000 square feet of commercial space was rented and retail rents began to stabilize. Why? Brooklyn’s such a desirable place to live now. Certainly, for anyone under 30, Brooklyn is now their first choice and not their second choice, says Doug Steiner, president of Steiner Studios and not totally unbiased given his interests in real estate development (80 Met). Let’s hope Crain’s is onto something!
Brooklyn Feels the Love of Rising Economy [Crain’s]
BHO problem is that he has sort of bought his own BS. It is very possible that housing in Brooklyn will no longer appreciate,in fact it might even depreciate,
but the reality is no one knows and where at one time a guy like BHO was a refreshing (and wise) alternative view to the perpetual, definitive (and wrong) view that RE was and always will be a winning investment;
now BHO has sort of become that which he despised, because his definitive and absolute view is no less ridiculous (in its certainty) than the ones predicting a persistent bull market.
It is really simple when it comes to RE IMHO – if you can reasonably afford it and plan on a long-term stay – then buy what you want – its not an “investment” its a house; if its for the short-term, rent and if you are buying RE for investment, all you should be concerned with is the rate of return – betting on appreciation is akin to going to vegas.
Brooklyn is great. Except for the Toren 😉
Wow–we are really in inflamed rhetoric mode today on all sides. Somehow I suspect neither the bulliest of the bullish predictions (Crains) or the direst of the doomsaying (BHO) will come to pass.
And for what its worth I am very happy to live in Brooklyn in the early 21st century. Few places I would rather live really. Sydney maybe, or perhaps Paris if I had no employment obligations.
Brooklyn RE prices go nowhere but off a cliff without Wall St profits…
FWIW, the Dow will be up a couple of thousand points over the next few months as in becomes clear that the House, and quite possibly the Senate will be controlled by the GOP-Tea Party. Of course, a few months later, inflation will become the new concern, but that’s at least “good” for real estate
(me @ParisParamus on Twitter)
You’re starting to look like a true nutjob with posts like that, BHO.
Brooklyn RE prices go nowhere but off a cliff without Wall St profits…
Wall Street’s Profit Engines Slow Down, NY Times Business Day, 9/19/10
http://tinyurl.com/2e6yjpr
“After an unusually sharp slowdown in trading this summer, analysts are rethinking their profit forecasts for 2010.”
“The activities at the heart of what Wall Street does — selling and trading stocks and bonds, and advising on mergers — are running at levels well below where they were at this point last year, said Meredith Whitney, a bank analyst who was among the first to warn of the subprime mortgage disaster and its impact on big banks.”
“The downward slide on Wall Street parallels a similar shift in the broader economy, which has slowed considerably since showing signs of a nascent recovery this spring. And if banks come under pressure, all but the safest borrowers may struggle to get loans.”
“As a result, executives, portfolio managers and analysts say that even the mighty Goldman Sachs, which posted a profit every day for the first three months of the year, is unlikely to deliver the kind of profit growth that investors have come to expect.”
“Banks are also scaling back on making bets with their own money — known as proprietary trading — another huge profit source in recent years that will soon be forbidden under terms of the financial reform legislation passed by Congress this summer.”
“To make matters worse, he said, many Wall Street firms increased their work forces in the first half of the year, before the mood shifted and worries of a double-dip recession arose. If activity remains anemic, firms could soon begin cutting jobs again.”
“Ms. Whitney says the gloomy short-term predictions foreshadow a series of lean years in the broader financial services industry.”
“Indeed, she said the Street faced a ‘resizing’ not seen since the cutbacks that followed the bursting of the dot-com bubble a decade ago.”
“‘We expect compensation to be down dramatically this year,’ she [Meredith Whitney, a bank analyst who was among the first to warn of the subprime mortgage disaster and its impact on big banks] wrote in a recent report. She predicts the American banking industry will lay off 40,000 to 80,000 employees, or as many as 1 in 10 of its workers.”
“…the boom years are not coming back anytime soon. As both consumers and companies cut back on debt, and financial reform rules put the brakes on profitable niches like derivatives and proprietary trading, the engines of earnings growth for the last decade will continue to sputter.”
Game Over for the Brooklyn economy. Wanna know where we’re headed, study both the Great Depression and the lost Japanese decades.
Cashing out or short-selling won’t get any better than NOW. Capture near peak comps today or regret it later. Buy back in at steep discounts in the years ahead.
***Bid half off peak comps***
Pathetic – so willing to classify, ridicule and judge everyone else; but cant even take a half-way honest look at himself.
quote:
Rob what stereotype are you???
the happy nihilist.
*rob*
Rob what stereotype are you???