Quote of the Day
I pick cereal very quickly thank you very much. Just don’t want to pay a crazy price when I am literally seeing price cuts in the hundreds of thousands for some properties we’ve looked at (but rejected for other criteria). There is basically unanimity that prices will go down in 2009, and possibly through to…
I pick cereal very quickly thank you very much. Just don’t want to pay a crazy price when I am literally seeing price cuts in the hundreds of thousands for some properties we’ve looked at (but rejected for other criteria). There is basically unanimity that prices will go down in 2009, and possibly through to 2010 and beyond. We only sold a few months ago, and the meltdown happened, so we’re just actively looking, but not rushing. We have a list of flexible criteria for the property we’re seeking, of which price is just one element – but since price impacts so many other parts of our lives – esp time spent with our kids! (big mortgage = more hours working to pay the bills), price is a major criteria, esp in an environment when prices are headed down.
— by Miss Muffett in Last Week’s Biggest Sales
When my friend was looking in 98, Williamsburg houses were going for more like $350K, for the 2 and 3-families. The smaller shacks were about 150K, but they were actual shacks. This was a huge uptick from a few years previous, granted. I remember at the time thinking those had to be the ceiling… because unlike most of the rest of Brooklyn, the architecture just wasn’t that great.
Okay, so I was wrong.
Anyways, my friend bought a shack in Park Slope instead. Because it was cheaper.
So I guess what I am saying, Williamsburgguy, is I wish we had known you then! I would have happily bought one of your properties for $68K.
To go back to the broader issue at hand, I guess we need inflation. Maybe the traders will artificially boost commodities prices again and make that happen.
We all are.
Well I’ve never seen DIBS in person, so I’m not sure if he’s a figment of my imagination. Or you all are in fact.
I’m arguing with DIBS, who thinks everything is going to be fine. Far worse than arguing with someone in my head.
Ditto, note my post above. If it still doesn’t make sense: The Fed is fighting deflation –so of course your dollar purchases more now than it did before. This is the only real definition of the phenomenon, as I understand it. Are you now arguing for deflation? If so, please explain how housing prices in Brooklyn will be affected by a massive deflation? It is possible that Bernanke will lose the battle against deflation (I think it is likely) in which case your dollars will be worth more, but only because they are, as they were in the GD, incredibly scarce –i.e, you will have so few it will still feel like poverty. It’s possible Bernanke will win the fight against deflation, but at the cost of the dollar’s authority against other currencies. In which case, you will feel poor because, though you have more dollars, their purchasing power is vastly reduced –especially against Toyotas and oil and Miele appliances and exotic alpine cheeses. If you think Bernanke will re-boot the system at no loss to you, then I’m wondering why, given his superpowers, he failed to avert the current cataclysm. Please explain.
I didn’t argue anything about a rescue – you appear to be having an argument with someone inside your head. I was not understanding your factually incorrect statements about the current state of the dollar. Now I see that you are predicting that the dollar will crater, and massive inflation will occur. fair enough.
actually the dollar getting weaker will help a bit. It will bring the euro dollars back into manhattan and other areas. I see alot of europeans at my son’s school in Hoboken. If the EURO keeps strong than that may help a bit but I see them getting with the program and start easing again. If not they will be the last to get out of this recession and probably risk hurting the euro alot more than if they just eased. As for my rents they are low in comparison to my next door neighbors. He gets more money for his two apts and I also give my renters storage space in the basement he does not. Even if my rents went down I would still be fine since I purchased this property years ago thru a estate sale.. I only buy things on sale…. That is the way to do things ..
Whuh stated “the dollar is cratering”, thats simply not true. A dollar buying a “third of what is used to” is not the case. So, again, explain please.
There was a speculative bubble in oil that spiked gas prices over the summer; that’s not a reasonable basis for comparison going forward. Deflation in the near term means your purchasing power increases; but Bernanke is fighting deflation by debasing the currency, which means, in the long run, the dollar will collapse, and possibly lose reserve currency status; with the possible nightmare scenario of a US default. (These are not chicken little scenarios; markets price the probability of a US default, and lately the price indicates that risk is increasing.) The UK is a bigger basket case than the US, so of course the dollar has rallied against the pound, but from a secular position of weakness. (There still is no purchasing power parity between the US and the UK.) The RMB is the currency to look at, but if you’re arguing that we will be rescued by a round of competitive devaluation, then I am very amused at your idea of “rescue.”