patrick.net

Can you believe this? She feels “discriminated against” because she can’t document enough income to pay for a 100% financed stated income mortgage loan? She should be thankful that she’s being saved from likely foreclosure in the next 2-3 years. Add to that the “two other adults” in her household contributing to the mortgage. Sheesh - so that’s one of the faces behind this whole real estate runup? God help us all.

Yeah, maybe she'll bring up a lawsuit to get the extra money required for a down payment so she can buy the overpriced POS. Then, after she falls behind on payments in a year or two, she'll sue again claiming she was taken advantage of.

It's very sad, but I'm afraid that this is what our country has come to.

How desperate can you get, this agent needs to advertise herself! Not even a link to a property or anything else. I wonder what else she offers ;). She would probably do better in craigslists erotic section.

Malcolm Says:

> FormerAptBroker, I used to agree entirely with that
> point of view until I noticed no tobacco or alcohol
> bilboards in my neighborhood, but for some reason in
> minority areas that is all they see day in and day out.
> I tried to imagine what that would be like to grow up
> with constant marketing like that. The movie Supersize
> me also helped alter my view. Although in general it
> is individual choices, there is a vast fast food conspiracy
> in this country.

Lucky we don’t have any tobacco or alcohol billboards in the north part of town since after driving past the billboards for a couple weeks I bet both me and SF Woman would be smoking menthols and drinking malt liquor every day…

I’ve taken more marketing classes than most people and don’t think that driving past a billboard with a smoking cowboy will get many people on their way to the gym to pick up a pack of smokes but it has a good chance of getting a guy on his way to 7-11 to pick up some cheap cigarettes to spend the extra buck for a pack of the name brand.

I also think that a billboard that says “don’t let the smooth taste fool you” might get a guy on his way to buy a 40 oz. bottle of Colt 45 to pick think about King Cobra, but it probably won’t get the guy on his way to buy a bottle of Flowers Chardonnay to even think about buying a bottle of malt liquor…

Malcolm says, "There is also a perpetual lie to fool the masses that private industry is always superior to anything the government does."

Absolutely not true. The government is unsurpassed when it comes to providing private industry with the means to subvert the free market.

Sorry to disagree, but while I don't subscribe 100% to the libertarian viewpoint, I do believe our government is evil incarnate and should be severely curtailed.

Malcolm, for example... without the Fed, we would never be in the midst of a housing bubble that is about to implode.

Allah, man that girl has the big hair thing going on.

How desperate can you get, this agent needs to advertise herself! Not even a link to a property or anything else. I wonder what else she offers . She would probably do better in craigslists erotic section.

I remember her! She was one of the burnouts in high school who was always hanging out in the smoking lounge wearing the "Poison" T-Shirt.

"My MBA classes also impacted my view"

Of course, another dime-a-dozen MBA drone :-)

Well Frank we will disagree, because even though I can follow the logic of cheap money causing the bubble I don't agree that it did. It was free market innovations of subprime lending, and non accountability that came with always passing the buck to someone else that caused it. Interest rates from 94-2000 (when I wasy buying) were very low in comparison to rates prior to that, but that didn't cause prices to triple. For most of my holding period my homes went up at a nice nominal steady rate. Then every clown around me who saw I made money, and bought in to the hype jumped in and bought without regards to the fundamentals. That's what really caused it.

Nice insult.

I'd say you are the lemming, oh the free market cures everything, private industry is noble, and good. Come on man, it is the most efficient way of disbursing goods and services, but it is not the moral institution it is made out to be. Private industry does way more evil in this country than the government does. The government is just incompetent a lot of times because it lacks a profit motive.

BTW a drone follows the view, where in my case I dissented from it so learn proper English.

Just reading up on past real estate booms. In the 1920s, Florida had a big boom that had people buying and selling options on property. Before it imploded, an acre of land sold for $6000. After, an acre couldn't be sold for $2.

Banks ended up with thousands of acres of negative cash flow and all they could do was hope for improvement sometime in the future.

Improvement eventually did come for banks and individuals about 30 years later in the 1950s. It's true when they say that eventually real estate will come back. Unfortunately for many, 30 years was beyond their life times.

"The government is just incompetent a lot of times because it lacks a profit motive"

LOL. Show me a politician that lacks a profit motive and I'll show you a true saint. When you leave MBA school and enter the real world, lets talk.

I already have, and I made a million dollars already, so yeah, let's talk.

And once again, I don't believe that private industry are saints. The difference between our views seems to be that I don't foolishly believe that big government is the answer to anything and is, in fact, a big part of the problem.

You want to get cocky with me, why don't we do a comparison. I'm 35 years old with an advanced degree, I own my house outright, I drive a 99 Porsche Boxster, also fully paid off, and I live in one of the greatest cities in the world. What are you Frank? Just some lemming repeating stupid dogma because it is how you can caudal yourself to sleep at night.

I never said it was. But there are areas on the spectrum between social need, and market opportunities that both have relevant and legitimate functions. Understand someone's point of view before you try to knock them down, you will look like a fool in the real world as you put it.

Ok, ok rich guy. Just remember what they say about foolish people and their money.

An intelligent person might have said, gee that is a different point of view, it sounds kind of strange but how do you arrive at that conclusion. To which I might have responded.

Well my research demonstrated that free markets fail in areas of high social needs because they can't derive a revenue stream. A rehab clinic might be such an example. However government fails in commercial markets because it has no incentive to improve, and as a rule of thumb government bureaucrats think in minimalist terms and try to satsify the basic need instead of looking for ways to maximize customer satisfaction.

Oh, you might say, that sounds interesting. So how do you arrive at your conclusion about innovation.

Well, I might respond by saying that given the global market place and the extremely high cost of innovations nowadays, and the fact that private industry has no way to recognize the social spillover benefits to society of some innovations, government through public policy has demonstrated that an infusion in some of these areas can act as a catalyst for innovations that would otherwise not occur.

Hmm, that sounds like an interesting point you might say, I'd like to subscribe to your news letter.

Of course, another dime-a-dozen MBA drone"

I would agree, last we forget plenty of MBA in 1980 who could not
get a job and few that did got staff jobs equall to BS degree.

Having a MBA on your resume in Silicon Valley means you cost more
than the product we manufacture.

I actually agree with that. An MBA is barely the same as a bachelor's degree was 10 years ago. It's getting more an more competitive people, you better get your skillsets up or you are going to be commoditized. Innovation has already displaced entire industries of professionals.

Look at travel agents, accountants, engineers, software engineers, attorneys, realtors....it's a long list

All of these guys are either being completely eliminated, or are seeing real decline in annual salries. Instead of shooting the messenger you should go get yours.

Bap, let's just say, I earn more in my sleep than you do at whatever 'job' you have.

"and I live in one of the greatest cities in the world."\

Where is this if I may ask?

North San Diego, city is San Marcos

FYI
Im in corp accounting/finance for tech company.

And to clarify I meant the greater San Diego area, in a nice neighborhood. Not ocean view or anything like that. I know a JBR like you is going to try to find something wrong with it.

The economy in say San Marcos is different from San Francisco South Bay. Very different...

Thats ok Malc Im worth 2.2 Million myself and rent until I see 50% decline in prices.

Space, glad to hear you are doing well. Unlike others, I'm not going to try to piss on your accomplishments.

Malcolm, considering that a free market doesn't currently exist on the scale that you imply, I wonder how thorough your research could possibly be. Now, given your arguments thus far, and your participation in this blog, I'd guess that you don't own a home, have little or no savings and are a typical brain-washed MBA student recently out of school and competing with the million of other similar morons out there who thought that getting an MBA was the ticket to easy street.

I know I started this and I'm sorry I did, but you'll have to get your education elsewhere. I have better things to do, thanks.

I agree accountants and eng. are being scaled back locally in California.

What can I say.. it just happened but not by my hand or accomplishments.
It was from someone elses foolish mistake and greed. :)

Space, that's a good strategy. I would do the same, but I bought my house so cheaply that I hate to lose my prop 13 cost basis so even though the paperwealth is declining, I have no mortgage so I'm happy to hang on to this house. I might let some struggling relative live in it for cheap if I buy something else up when prices really do pop.

Anyone who says luck isn't a big part is a freakin liar. The skill is recognizing the opportunity, but some would rather knock someone else for trying.

Good move Malcolm... Sounds like your in the driver seat..
Very good point on Prop 13... and i agree

Actually,
My start up was valued at $6B back in 1999. Given the vested stock options.
it was not my doing... the actually brains did very well much better than me.
Im actually at the low end.... Oh what a great time that was...

Well Frank you'd be wrong on almost all counts except I did get my MBA in May of 2006, more as a personal achievement.

The start up share price went on IPO from 35 to 600 per share. I managed to cash everything out. The founders and engineers did well. But the valuations the public expected was unreal and they keep overpaying for the "hot stock"
Anyway good luck

Your comments on the scale of global market indicate your ignorance on the subject. This is for two reasons: China alone is going to swamp us, Japan already has.

Secondly these are hybrid models as I propose because their governments listen to industry and provide the infrastructure for them to kick our asses in innovation.

The free market's strength comes from what entrepreneurs do with innovations.