Price Cuts Working at Northside Piers, Others to Follow
The price cuts at Northside Piers that we first reported here and then again here have been picked up by Bloomberg. And, according to the news service, the reductions (two-bedrooms in the waterfront development are now as low as $691,000) are working: Contracts have gone out on five of the remaining 60 units in the…
The price cuts at Northside Piers that we first reported here and then again here have been picked up by Bloomberg. And, according to the news service, the reductions (two-bedrooms in the waterfront development are now as low as $691,000) are working: Contracts have gone out on five of the remaining 60 units in the last week. There is a stirring going on in the market,” said CBHK CEO David Michonski said, “but only at a lower price point. GMAP
For the reason I mentioned above, the credit markets were frozen there until 2003. Most economists will tell you that spending on public works isn’t going to a have a strong multiplier effect.
The marklet became much stronger as of April, 2003.
dibs, here are a few similarities: japan had a speculative bubble in the 80s. credit was easily obtainable. banks granted increasingly risky loans. the banking system was non-transparent. In the face of an economic crisis, the central bank lowered interest rates to zero, which left it no way to respond with monetary policy. Instead Japan responded by spending huge amounts of government money, which they borrowed, on public works projects. It took a decade for the economy and asset prices to recover.
good? now you go.
The Japanese government initiated their response to the crisis in 2003 by buying convertible preferreds in the banks. 2003!!!!! That was 13 YEARS after the market crashed in 1990.
I can hook you up with some Japanese guys with weird hats.
“BHO said this thing’s going to be an L and not a V. You challenged it and neither one of you supported the argument.”
I simply asked him how long as a basis for a discussion. I can support my arguments if I know what the logic is on the other side. Pretty basic stuff I might add.
BH76 comes to a conclusion above with a well thought out line of reasoning!!!!!! It will happen because I think it will. This is the kind of stuff that’s not worth discussing because the posters can’t actually formulate any good reasons based on anything.
Japanese guys?
Snark…you should meet more guys.
I tried to give you folks some real history — trying again. Acutual prices fell in one building by 60% (avg. over three years — few sales in that period, all distress) from 1993 through 1997 and did not returen to 1993 level (peak) until 2001.
No reason not to expect similar this time.
ok dibs, point taken — but it’s not assinine, come on. it’s the most recent example of a developed country that had a real estate bubble pop, and they lost a decade.
BHO said this thing’s going to be an L and not a V. You challenged it and neither one of you supported the argument.
I’m saying that the last one the world saw was an L. It’s a starting point. Tell you what, Krugman’s got some support for this on his blog…I’ll see if I can find it.