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What do you think of the Fed?


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2007 Mar 20, 8:36am   25,760 views  259 comments

by Patrick   ➕follow (59)   💰tip   ignore  

Fed seal

Is the Fed really responsible for the housing mess? They definitely contributed through their interest rate cuts, but buyers and realtors must also have some responsibility.

And is the Fed as wicked as the non-mainstream press believes? There are dozens of sites accusing the Fed of keeping the rest of us down through inflation and various shady deals, but I've never heard a really convincing explanation. As I understand it, a little inflation is good because it encourages people to invest or spend rather than simply sit on their money.

Patrick

#housing

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204   FormerAptBroker   2007 Mar 21, 10:38am  

astrid Says:

> If the Future Mrs. FAB is a stay at home (or working
> severely reduced schedule) wife, she should learn to cook.

Everyone should learn to cook…

I hated that my parents made me cook as a kid (and work as an unpaid caterer/bartender with my brother and sister when they had big parties), but today I’m glad I’m a better than average cook (and bartender)…

It is fun to have a little healthy competition in a relationship when both people try and impress each other with their cooking (and wine pairing) skills…

205   Peter P   2007 Mar 21, 10:39am  

I like to "impress" people with the amount of oil/fat/lard in my cooking. :)

206   HARM   2007 Mar 21, 10:40am  

Thanks, Forsaken! Must've been done by the Mortgage Lender Implode-O-Meter guy.

207   HARM   2007 Mar 21, 10:49am  

They, at least enjoyed the roller coaster ride. You, on the other hand, have not lived.

This is sadly true. You haven't really lived until you've woken up at 3am in a cold sweat, because your NAAVLP payment just tripled. I should really get out more (to open houses). :-(

208   OO   2007 Mar 21, 10:59am  

(OT)
Peter P,

I remember your mentioning at one point that some dealership could go as low as $7K below MSRP on Lexus SUV, since we are shopping for a new car, I was wondering if you can point me to any resources. Thanks

I eventually drove my old car into the ground after 14 years. So we are really excited to get into a solid new car that can last a long time.

209   OO   2007 Mar 21, 11:08am  

The hardest working among all Asians are Vietnamese.

I didn't know much about them until I came to the US, since in HK Vietnamese were usually associated with the boat people locked up in a detention camp engaging in gang fights, so the general image was quite negative. However, as I got to know more and more Vietnamese people, my impression changed drastically.

If there is a shop in the neighborhood that is open 16x7x365, it's gotta be a Vietnamese shop. What is even more amazing is, Vietnamese women work much harder than guys. When I was taking a leisure trip in Vietnam, I saw plenty of women working in the fields with their guys playing poker in the shades.

210   OO   2007 Mar 21, 11:11am  

Did anyone see the API score of Faria elementary school? 1000.

What the hell does that mean? Does it mean that every single student at that school who took the test must have obtained FULL score on the API test?

211   HARM   2007 Mar 21, 11:14am  

@GC,

No worries - I figured you were being sarcastic.

212   Randy H   2007 Mar 21, 11:19am  

FAB queried,

I’m just curious, do you know if their near term plan was for the wife to become a soccer mom when they bought in the East Bay?

Even if I was married to a beautiful smart woman and we both worked at Bishop Ranch it would suck to be childless and living in San Ramon (or even worse Pleasanton)…

It would be pure hell to sit on BART for an hour and a half every night looking forward to a dinner at the new Olive Garden before heading home to see the Prego floors in our “Great Room”…

I can't tell for sure. She comes off as the type who never wants children; but I've found that's not necessarily a reliable indicator.

It's 'Pergo', not 'Prego', although we'll pass that off as a Freudian faux pas, given the context.

by the way, i often don't use uppercase letters on purpose. after looking at YetAnotherCamelCaseCompany all day, i'm quite content to deal with the shorter end of the alphabet. it never impeded my earning ability, though poor writing skills will put a ceiling on one's career very effectively.

213   Allah   2007 Mar 21, 11:20am  

It is you guys who constantly mock the FB’s and imagine all sorts of hellish punishment for them. I have compassion for them. What that really means is that I leave them alone. They, at least enjoyed the roller coaster ride. You, on the other hand, have not lived.

Huh? How do you figure? What do you know about me? I live well, have a great family, plenty of real wealth, but best of all, I am debt free!!

214   Allah   2007 Mar 21, 11:22am  

Forsaken,

Great video! I miss your site!

215   Michael Holliday   2007 Mar 21, 11:53am  

Space_Acer Says:

“Considering all the outsourcing, I don’t see much of a future for “these kids”. We are at the very beginning of a big fallout. No one gets out of here alive!”
_____

I hope you're not right.

Unfortunately, you just might be...

Time for another chockychip cookie and some Hi-C fruit punch.

I wonder what my broke a-- neighbors are up to today?

216   Randy H   2007 Mar 21, 12:39pm  

Allah,

It is you guys who constantly mock the FB’s and imagine all sorts of hellish punishment for them.

He also charged me with being a realtor because I dared to posit that price corrections just might be sticky (almost a year ago at this point, mind you). I don't know, maybe they just aren't not sticky yet.

Filtered blog rss aggregating is essential these days. FeedDemon is your friend.

217   Peter P   2007 Mar 21, 12:44pm  

I remember your mentioning at one point that some dealership could go as low as $7K below MSRP on Lexus SUV, since we are shopping for a new car, I was wondering if you can point me to any resources. Thanks

I think that was CB. But you can start by reading newspaper for good deals, which tend to come and go.

I prefer used cars. :)

218   Claire   2007 Mar 21, 1:00pm  

OO

Two possibilities on the API score - one it's an error - two - they were all/some given the actual test to study beforehand.

219   astrid   2007 Mar 21, 1:12pm  

I had some lovely non-conventional Vietnamese friends, but I've also encountered a couple *conventional* skinny little Vietnamese girls who were borderline bitchy.

220   astrid   2007 Mar 21, 1:14pm  

Randy,

You must tell me more about this filtered blog RSS aggregate thing. That sounds very exciting. (more concentrated goofing off for me???)

221   Peter P   2007 Mar 21, 1:17pm  

Do ask for a scent strip of it if you find yourself trapped in a mall against your will.

I will keep in mind, thanks.

222   Peter P   2007 Mar 21, 1:20pm  

I do like to hike in the mall. At least there is no horse shit on the "trail". :)

223   astrid   2007 Mar 21, 1:20pm  

Space Acer,

Now there's a Web 2.0 application I hope somebody is working hard on developing! A good spell/grammar check that automatically corrects capitalization, fills in missing words, remove nonsensical sentences. Me + That might one day convince others that I have greater brain capacity than an ordinary gnat.

Or even better, an incoming email filter that condenses 2 page emails into 3 KWIC sentences.

Instanteous telepathy would be the best, of course.

224   FormerAptBroker   2007 Mar 21, 1:23pm  

After I asked about the DINK couple that bought the East Bay “McMegaMansion” (aka “TractMansion”) Randy H Says:

> I can’t tell for sure. She comes off as the type who never
> wants children; but I’ve found that’s not necessarily a
> reliable indicator.

I’ve never met a woman that just “comes off as” “the type who never wants children” since there is a very short list of women that I have met (or even heard about) who have actually said “I never want children”…

> It’s ‘Pergo’, not ‘Prego’, although we’ll pass that off
> as a Freudian faux pas, given the context.

Sorry, but remember I grew up in a neighborhood with actual top nailed hardwood floors, redwood window sills and copper gutters…

My favorite East Bay TracMansion “feature” is the plastic/foam “wood beams”
http://www.fauxwoodbeams.com/fauxbeams.php

> by the way, i often don’t use uppercase letters on
> purpose. after looking at YetAnotherCamelCaseCompany
> all day, i’m quite content to deal with the shorter end of
> the alphabet.

when u write in all lower case most people will assume that u are a younger person. i have always assumed that randy h is older than i am since he has kids, but he may be a lot younger since i just heard from a fraternity brother (that pinned his girlfriend sophomore year and got engaged before graduation) has a son that was accepted to the junior university on palo alto…

225   sfbubblebuyer   2007 Mar 21, 1:28pm  

My favorite East Bay TracMansion “feature” is the plastic/foam “wood beams”

For a second, I figured you MUST be talking about the recycled 'green' beams and was going to defend alternative and recycled building materials.

Then I clicked that link.

Useless painted styrofoam glued to your ceiling for decorative purposes? You've GOT to be sh*tting me! You know what I want? Styrofoam babies to glue to the ceiling. Because at least THOSE would be conversation starters.

226   Peter P   2007 Mar 21, 1:29pm  

I can write a software that removes 100% of all writing mistakes.

227   astrid   2007 Mar 21, 1:30pm  

FAB,

Some of my friends already have kids and the others seem quite uninterested in kids.

I'm pretty sure Randy is a couple years younger than you. He is an early Gen-Xer, while you're a very late Baby Boomer.

"that pinned his girlfriend sophomore year" I've never heard that one before, does pinned = knocked up or does pinned = hook up?

228   astrid   2007 Mar 21, 1:32pm  

"I can write a software that removes 100% of all writing mistakes."

Does it also remove 100% of all writing?

229   Peter P   2007 Mar 21, 1:38pm  

Does it also remove 100% of all writing?

That is an unfortunate side effect.

230   astrid   2007 Mar 21, 1:38pm  

What I really hate are people (usually secretaries or ditsy support desk people) who set their email (or word document) to 18 pt font Script default. That reflects really badly on both them and their bosses.

231   Peter P   2007 Mar 21, 1:40pm  

18 pt font Script

Huh? I have used 7 pt courier before. :)

232   Brand165   2007 Mar 21, 1:42pm  

If I had faux timber beams in my McMansion, after a couple of beers I might be inclined to rampage about like Godzilla, snapping 8x8 beams with my bare hands. :)

I am going to look at a loft for lease on Friday. My back of the envelope calculations are that PITI+HOA is about $1450, but rent is only $1000. Quite a premium for ownership in a 1 bed, 1 bath place. Great location though.

233   FormerAptBroker   2007 Mar 21, 1:47pm  

OO Says:

> I remember your mentioning at one point that some
> dealership could go as low as $7K below MSRP on
> Lexus SUV, since we are shopping for a new car,
> I was wondering if you can point me to any resources.

I love the current Lexus LX470 and rented the Toyota version (with the live front axle that was never available in the US) on my last dive trip down under.

The dealers will be doing everything they can to move the current models off the lot before the new model gets here (the official intro will be in a couple weeks at the NY Auto Show):
http://www.topspeed.com/cars/lexus/lexus-lx470-ar14943.html

If you buy a Lexus LX 470 it will drop like a rock in value the day you drive it off the lot (and drop even more when the LX 570 hits the road). If you wait for the new LX 570 model you will do a lot better (and get a better vehicle)…

234   Randy H   2007 Mar 21, 1:50pm  

FAB

I think you and I are on opposite sides of the cusp, as astrid says. My son is pretty young but we also got started late. We married when we were both 28, even though we'd been together since the end of school.

Any chance you'd come to a Marin Brewing Company night if we can get enough people? We need someone to pay, lol. Where I grew up the hardwood floors were top nailed too (though not much redwood), but only because the houses were 100 years old then, 30-40 years ago.

235   Peter P   2007 Mar 21, 1:53pm  

Any chance you’d come to a Marin Brewing Company night if we can get enough people?

When? If it is on a week night perhaps a party in the Ferry Building may attract more people.

We need someone to pay, lol.

Just do a Lucky (Unlucky) Draw? :)

236   astrid   2007 Mar 21, 1:54pm  

I will sulk tomorrow if Edwards drops out. Why do bad things happen to non-Stepford wives?

237   cb   2007 Mar 21, 1:55pm  

OO

Putnam Lexus has 07 RX 350 for $7000 off MSRP ($2500 under invoice) as of 2 weeks ago. If they run out of 07, I would think 08 would be around invoice or slightly (

238   cb   2007 Mar 21, 2:01pm  

OO

My last post got cutoff, if you are looking to see how much to pay for a car, go to edmunds, car talk forum, people post how much they pay for each model, it's a good resource.

BTW, Millikin in Santa Clara also has 1000 API scores or 998 or something like that, doesn't do anything for me, but everytime I say that my wife say I don't care about my kids education.

239   Peter P   2007 Mar 21, 2:03pm  

Scores are really over-rated. Education is not video game.

240   Randy H   2007 Mar 21, 2:16pm  

When? If it is on a week night perhaps a party in the Ferry Building may attract more people.

Anywhere convenient, so long as there is quality beer and wine available. I thought a Thursday or Friday night would work best. Probably not for a couple weeks yet, I'm just trying to stir up interest. We tried a year ago and it never happened.

As to who pays, I say we make surfer-X drive up and open the tab.

241   Peter P   2007 Mar 21, 2:18pm  

New thread: What is going on?

242   OO   2007 Mar 21, 2:19pm  

FAB and CB,

thanks a bunch for the advice.

243   Peter P   2007 Mar 21, 2:19pm  

Friday night works for me. Or we can have some sushi too?

BTW, I afraid the spring ("dead cat") bounce is here.

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