patrick.net

USA real estate is half off to the rest of the world. This is probably what Bernanke has in mind!

Are you suggesting that someone is part of an international real estate conspiracy?

Will we see CAD-USD parity this year? We are awfully close to that.

Peter, we'll see it tommorrow!

For all practical purposes we already HAVE reached parity with CAD. I had sold calls against my position in EWC. It will be called away now.

O Canada! Our home and native land!

"Will we see CAD-USD parity this year? We are awfully close to that."

I think we will. I like the EWC (Canadian market ETF) as a triple-play on rising stock markets, falling dollar, and strong demand for commodities they produce. I'd like to buy more but it hasn't given me a good enough pull back. Speaking of which how about that Aussie dollar?

I'm absolutely livid with the Fed.

My friend is thinking of offering 10% for a Walnut Creek property, I didn't know what to advise her, I don't know that area well, so I was wondering if anyone lived closer to there and could give me an idea.

I'm damned if I tell her to wait and damned if I don't!

That shoudl be 10% less than asking

I’m damned if I tell her to wait and damned if I don’t!

It is best if you don't advise.

On the other hand, there is no such thing as asking too little. If you ask $1 for the house, you will just have a mega bidding war. The market is always fair.

if the market is always fair, what the hell are you doing complaining about real estate prices on this blog?

I do not complain about real estate price. We are merely projecting that the bubble will burst.

I do complain about anti-market behaviors. Bending over for banksters is particularly detestable.

I don't feel like answering your questions. I want sushi.

so whats an ‘anti-market behavior’? is that like anti-matter? do anti-markets create a high energy explosion when they comes in contact with markets? what does a pure market look like?

If you need to ask this question in the context of today's Fed rate cut, you either need to go back to your econ 101 textbook, or you are trolling.

Sign of the times:

1980's: Reagan says, "Mr. Gorbachev, tear down this wall!"

2007: Jim Cramer says, "Mr. Bernanke, lower those rates!"

LunarPark Predicted:

"I think the Fed will cut, stocks will rally, Bay Area housing will get a boost - in the short term. I would love to be wrong."

So far, it seems that LunarPark's crystal ball payments are caught up.

With so much depressing news today, thought I would try to cheer people up. Time for another espisode of Flippers on the Loose (or is that Lose?).

This property has been featured before (2649 Russell St):
http://www.teamfeusier.com/Featured_20_Listings.html
While walking by I noticed it is now occupied. Renters perhaps, or maybe Team Feusier has taken refuge. At any rate, a mortgage broker/real estate agent is always a winning combination. I am a bit puzzled by the entry on Property Shark (near the bottom of the page). What's that.. Old Trustee's Sale, Auction Date: 7/23/2007, Unpaid Balance $1,405,449. Since the property is still listed on Team Feusier's web page, I am guessing they held the lender at bay?

Everybody knows I like the value a TIC can provide in today's market. I remember spotting this listing (1732 Virginia St.) last year and thinking it would be good for owner occupancy. Evidently some else thought it would make a good flip. Polish the hardwood floors and get me a slab of granite! Sold on 12/14/2006 to the flippers for $794,000. Two separate TIC units now for sale at $515,000 and $550,000. Around 1000sq.ft. each, but "1600sq.ft. of warranted and unwarranted space" -- bonus! Private enterprise is alive and well in the East Bay!

For our final entry, we picked a "reduced" listing at 1716 Dwight Way. This property was sold to the flipper on 12/22/2006 for $480,000. I hate to say it, but these guys may have "over-upgraded" -- from new insulation to a stainless Thermador "repair-me" refrigerator. A bargain now as it has been reduced from $799k to $759k. How low can it go?

In the long run, sushi is far more valuable than children. In 2050, there will be 10 billion people on earth and close to zero blue fin tuna.

a perfect market resembles socialism.

Huh? O yeah, but debt is wealth.

A perfect market is as far away from social-ism as it is possible.

For those who said the market has already priced in a .5 rate cut, you'll need to upgrade to the new 1080i Crystal Ball.

In the long run, sushi is far more valuable than children. In 2050, there will be 10 billion people on earth and close to zero blue fin tuna.

Perhaps I should start hoarding tuna.

The sensible way is to pass all costs associated with children to the parents. They are still free to have kids. Just don't ask for additional assistance because they have kids.

If BA housing does get a boost in the short term, it just means the knife has grown to a sword. Or maybe a chain saw.

Anybody else catch Glen Beck's TV show today? He had Peter Schiff on from Euro Pacific Capital, who advises the average saver to buy international currencies (self-serving albeit) and hunker down for a good old fashioned depression.

Schiff however had nothing to say about sushi. *sigh*

"who advises the average saver to buy international currencies (self-serving albeit) and hunker down for a good old fashioned depression."

Wouldn't a "depression" make good ol' dollars in a US bank account more valuable? Perhaps savers will get a break after all.

Perhaps savers will get a break after all.

Depending on where is saving accounts are...

It does not pay to be responsible. Haven't you learned the lesson yet?

Next time, please drink the collective kool-aid.

I think that more than Bendover Ben's rate cut, the house approval for mortgage aid (FHA reform) is the more damaging issue. lunarpark posted the link earlier, but here it is again: http://tinyurl.com/28hu4y

It lowers (eliminates?) downpayment requirements and raises conforming loan limits. The arseholes in congress passed it, and most likely the arseholes in the senate will follow.

SP

The arseholes in congress passed it, and most likely the arseholes in the senate will follow.

It is hard to forgive Bush for losing both houses. :(

"It does not pay to be responsible. Haven’t you learned the lesson yet?"

It does feel like we have had a paradigm shift - without a clutch. I hope the term "saver" does not become synonomous with "dope", "clown," or "naive."

eburbed,

I really think holding USD in the form of bonds or cash is the worst decision.

I personally have my holdings in forex bonds, foreign stocks ADRs (only developed countries), gold, oil and commodity stocks. I hold no USD cash except for spending money and exchange every USD penny that I don't need every month. I have held 0 USD bonds in the last 3 years, and I have been very happy with my return so far.

I don't know what the best portfolio should be, but I am quite sure that the worst portfolio will be holding US treasury or US bonds. It is very clear to me that the Fed has chosen to sacrifice the dollar for the sake of economy, it has again chosen inflation over deflation, so even US stocks in select sectors that will benefit from this all will be a good idea.

"Wouldn’t a “depression” make good ol’ dollars in a US bank account more valuable? Perhaps savers will get a break after all."

Indeed. Savers can better survive a depression. It's that recession in the near term that will kill the US dollar. So better to save it as Euros or whatever....Schiff believes we'll see 50% loss on the US dollar. Yikes.

Too bad sushi isn't something one can stockpile.

Not investment (or culinary) advice!

I hope the term “saver” does not become synonomous with “dope”, “clown,” or “naive.”

No... more like "Tinfoil Hat"

"It lowers (eliminates?) downpayment requirements and raises conforming loan limits."

Well, I hope the arseholes left in the provision that a home with an FHA loan on it must be owner occupied - the rule that makes the loan come due the moment the house is rented out.

If you need to ask this question in the context of today’s Fed rate cut, you either need to go back to your econ 101 textbook, or you are trolling.

There are a number of regular posters who do nothing but troll. This is the main reason I don't bother to post or even read here much: the signal to noise ratio has gone way down. I am sure Randy feels the same way.

I expect he will be back, but only rarely and not as a moderator. He said as much.

The depression is the end game, no matter how you inflate it.

However, before depression, we will need to go through phases of massive reflation - printing, futile effort to save the economy. One needs to ride the opportunity of reflation and jump off right before it finally pops back into fiat currency.

Right now we are just entering the fiat-becomes-worthless reflation phase.

It is just so crystal clear that both the congress and Fed are going on a concerted effort on another big round of money printing. Take advantage of it.

It is just so crystal clear that both the congress and Fed are going on a concerted effort on another big round of money printing. Take advantage of it.

Yes. I made some bad trades today based on wishful thinking.

"So better to save it as Euros or whatever….Schiff believes we’ll see 50% loss on the US dollar. Yikes."

If we have a depression in the US, Europe will not be far behind. That may dampen the USD-Euro spread. Either way, savers would win, be the savings in dollars or Euros.

Unfortunately, it appears that the gov is throwing all resources behind the inflation tool. Inflation will be used to keep stocks nominally high, to bail out the record number of debtors, and to bail out the gov's own record debt. This will, of course, create more debt in the process.

"It is just so crystal clear that both the congress and Fed are going on a concerted effort on another big round of money printing. Take advantage of it."

How? By borrowing to buy assets like houses? By using any savings to buy assets like houses? Or you thinking of converting your dollars to foreign currency as fast as you get them?

HeadSet Says:
Sp, are you confusing kiloTONS with kiloPOUNDS? You are saying that a MOAB that ways less than 10 tons packs the wallop of 14,000 tons of TNT. What explosive is 1,400 times stonger than TNT?

Sorry, my mistake. The blast-yield of MOAB is 11 tons, not 11kt. The new Russian bomb's yield is 44 tons, not 44kt. I could not find the reference to the US response claiming we "have a bigger bomb", so I don't know the exact yield of that one.

SP

"Yes. I made some bad trades today based on wishful thinking."

Yep, you too could use some windex on your crystal ball.

Seriously, several people on this blog thought the Fed would act more responsible that to do a .5 rate cut. Now I sense a "should have known" attitude about whose interests the Fed would appease.

Does anyone know where I can get a 1080p crystal ball as my credit line is starting to look more attractive?
Hey, Patrick has startd an new thread on Hedges.