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The "I really miss 'America's Overvalued Real Estate'" thread


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2006 Jul 5, 6:36am   31,080 views  377 comments

by HARM   ➕follow (0)   💰tip   ignore  

As many of you know, we recently had a casualty in our extended bubble-battling blog family. Sadly, it looks as though the founder of one of my personal favorites, "'America's Overvalued Real Estate", has sold out to the highest bidder --a commercial RE company :-(. (Note: previous rumors to the effect that the site had been hijacked/sabotaged by the NAR have proven to be unfounded.) As Different Sean might say, "there's the perfect free market at work again." ;-)

This site --an instant classic-- hosted hundreds of examples of absurdly overpriced wrecks sent in from all over the U.S. and Canada, along with the satiric and often hilarious commentary from the blogmaster. It was wonderfully cathartic and priceless for its comic relief and real-life illustrations of how unhinged sellers have become, thanks to our Fed & GSE-blown liquidity bubble. I spent many a Friday afternoon perusing the latest submissions, often reading them aloud to Mrs. HARM. Truly fun for the whole family.

In honor of this fallen giant, I dedicate this thread as a tribute to A.O.R.E. Please post local examples --with photos and/or MLS links if you have then-- of the most outrageously overpriced $hitboxes in your local neighborhoods. International submissions are also welcome. I shall kick things off by re-posting one of the most egregrious and well publicized examples from last year -- the infamous $1.2 million shack from "Naked City", Las Vegas:

naked greed

Post & enjoy...
HARM

#housing

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238   Different Sean   2006 Jul 6, 12:32pm  

i'm not even getting into the 'illegal migrant labourer' question, i've always lived in sea-locked countries ;)

obviously the concept of borders and the definition of the 'nation-state' have firmed up in the last century or so...

i'm interested to draw parallels, as have others, of the allowability of historical migration patterns vs present-day ones, and the social change that they have brought about.

but there are very real questions about the 'gatekeeper' role, desirables and undesirables, and so on. australia actually has a lot of undesirables who came in legally, and the problems are really beginning to surface. There are a lot of lessons of attempted multi-culturalism, and they're not all touchy-feely wonderful ones -- some of the policies of the 80s were way too liberal (in the sense of open) and naive...

239   Glen   2006 Jul 6, 12:32pm  

I’m suggesting recent illegal immigrants are usually not top drawer stuff. They’re not the best and brightest of their country, just the most desperate and conveniently connected ones. The smartest people in China and many other developing nations now try to do well at school and get to the US by legal means. Let’s work harder to bring those people in.

I agree that we need all the smart, educated immigrants we can get. We should feel lucky that many of the world's best and brightest still see the US as a desirable destination.

But I think it is hard to generalize about "illegal" immigrants because we presently allow so few legal immigrants. Some "illegal" immigrants are ambitious and entrepeneurial, others are "not top drawer stuff." As a taxpayer, I think we should be trying to recruit as many young, healthy, hard-working people as we can for our team. To the extent we can determine in advance who is a criminal or otherwise a net drain on society, perhaps I could accept a policy excluding such people. But it would be a big mistake to assume that anyone who does not currently have legal status under our present restrictive immigration policies is automatically a net drain. And to the extent that they *are* a net drain, it is often because we choose to provide an overly generous welfare state to all comers.

240   Joe Schmoe   2006 Jul 6, 12:41pm  

Glen, Astrid,

I am not troubled by the fact that many of the recent immigrants are not the "best and brightest" of their home countries. Over the years, America has done just fine with the great unwashed.

My own ancestors, the group that came over on the Mayflower, were lunatics, members of a lunatic fringe religious sect, the 17th Century equivalent of Hare Krishnas. My other ancestors (as best as I can tell, it is hard to trace the ancestral heritage due to centuries of inbreeding) were French, German, Irish, Scandinavian, and Scots-Irish peasants who came over becaue it was too hard to eke out a living from the depleted soil of the old country.

Virtually all Americans can trace their roots to the lowest of the low. Until recently, the best and brightest -- in terms of education, wealth, or accomplishment -- almost never emigrated here. Yet as a country, we've done just fine. The grandchildren and great-grandchildren of the illegal alien dishwashers of today will be the astronauts and engineers of tomorrow.

It is certainly great to get the best and brightest whenever we can snare one. But even the huddled masses will benefit us in the future. I just think that we cannot overlook the massive costs they involve in the present. I don't mind bearing the current costs but I don't want them to grow any bigger than they already have.

241   Different Sean   2006 Jul 6, 12:42pm  

Gangsters, criminals, loan sharks and slave traders should be prosecuted and/or deported.

They should certainly be prosecuted, just as any criminal should be, regardless of ethnicity. There's a question of once you've extended citizenship, do you have the right to take it away? You should have done all your due diligence by then...

there was a populist party here called 'one nation' which was very anti-elite and grassroots based which polled reasonably well -- they were seen as ultra-right wing, but they were pretty well 'nationalist socialists', as were the nazi party and the KKK, where right meets left. they had very simple policies and weren't the sharpest political tools in the shed, but one original stance was that 'any [recent] immigrant who commits a crime should be deported' -- people used to throw water bombs full of urine at them on their way into public meetings... however, the right-wing PM john howard partly succeeded by co-opting their policies in a slightly attenuated and hidden form to steal the votes back...

242   Joe Schmoe   2006 Jul 6, 12:44pm  

The thing that all immigrants to America have in common is their attitude. They are all willing to work hard, take risks, and basically get off their rear ends and DO SOMETHING in order to create a better life for themselves. This is a rare quality; lots of people, if not most people, are content to sit on their tails and take whatever life dishes out to them.

An immigrant may be an illiterate, unskilled peasant in his home country, but if he's got the (pardon the expression) balls to get accross the border, I think we can use him.

243   Glen   2006 Jul 6, 1:01pm  

I agree with your point about unskilled immigrants and future generations of same. As for the present cost, I think it is largely (as I pointed out earlier) a function of our dysfunctional system of tax redistribution. I am certainly not opposed to providing emergency health care and public education for immigrants, but I think the costs of these services could be reduced greatly through deregulation.

244   Different Sean   2006 Jul 6, 1:24pm  

I am certainly not opposed to providing emergency health care and public education for immigrants, but I think the costs of these services could be reduced greatly through deregulation.

deregulation, hmm. the american health industry is already one of the most deregulated in the world. however, it costs approximately twice as much to run it as most 'social-ised medicine' countries which further provide a guarantee of affordable access to health care. i.e. the US healthcare system, left in the 'free market', is twice as inefficient as the public healthcare systems which guarantee a universal outcome of affordable quality healthcare. For this reason, the US system has been ranked 37th in the world for the quality of healthcare provided. 'the best [technical] healthcare in the world, for those who can afford it'. at twice the overall cost, due to the HMO/health insurers/doctors/big pharma gouging you for a living and deciding mostly what NOT to pay for...

245   Different Sean   2006 Jul 6, 1:25pm  

Gangsters, criminals, loan sharks and slave traders should be prosecuted and/or deported.

They should certainly be prosecuted, just as any criminal should be, regardless of ethnicity. There’s a question of once you’ve extended citizenship, do you have the right to take it away? You should have done all your due diligence by then…

there was a populist party here called ‘one nation’ which was very anti-elite and grassroots based which polled reasonably well — they were seen as ultra-right wing, but they were pretty well ‘nationalist social-ists’, as were the nazi party and the KKK, where right meets left. they had very simple policies and weren’t the sharpest political tools in the shed, but one original stance was that ‘any [recent] immigrant who commits a crime should be deported’ — people used to throw water bombs full of urine at them on their way into public meetings… however, the right-wing PM john howard partly succeeded by co-opting their policies in a slightly attenuated and hidden form to steal the votes back…

246   Different Sean   2006 Jul 6, 1:37pm  

'deregulation' is another neoclassical rightwing thinktank weasel word which is code for 'please let me make even more money for myself without scrutiny or oversight or a governing role to guarantee socially acceptable outcomes'.

247   Glen   2006 Jul 6, 2:06pm  

DS said:
There’s a question of once you’ve extended citizenship, do you have the right to take it away? You should have done all your due diligence by then…

I wasn't talking about deporting people who had already achieved citizenship. I was talking about deporting people who commit crimes in the US, who are not yet citizens. If they are already citizens, then they should be prosecuted under US law, of course.

‘deregulation’ is another neoclassical rightwing thinktank weasel word which is code for ‘please let me make even more money for myself without scrutiny or oversight or a governing role to guarantee socially acceptable outcomes’.

DS: you sound like a socialist. I have never seen a socialist government successfully "guarantee socially acceptable outcomes." It can't be done.

248   Glen   2006 Jul 6, 2:07pm  

Can someone unlock my last post? I don't think it contained anything offensive...

249   Different Sean   2006 Jul 6, 2:42pm  

Glen Says:
DS: you sound like a social-ist. I have never seen a social-ist government successfully “guarantee socially acceptable outcomes.” It can’t be done.

hee hee hee, oh dear. never mind. just remain inward looking and keep reading the US press. europe and the british commonwealth don't exist. canada doesn't exist either. nor does australia or nz. nothing exists except the US. there are no such thing as 'social democratic states'. nor is there such a thing as state-supplied healthcare at a low cost. i pay nothing except 30% taxes for totally free healthcare, doctor's visits, X-rays, ER visits, hospital, etc. antibiotics are never more than about $20. old age and disability pensioners pay $3 for all scripts, and sometimes $0. i voluntarily pay about $200 a year for optional health insurance which grants me 80% of most dental treatments, optical, any script amount not covered by the govt subsidised script system, a free ambulance ride, and a few other sundries -- it's hard not to recover the full $200 just with optical and dental alone. but i don't exist either, nor do the benefits outlined above. and the US isn't ranked 37th in the world for health care, and it doesn't cost twice as much as a dozen comparable countries in the OECD to provide said inferior healthcare. and you can't read without your tiny brain jumping to 'prohibited' words like 'social-ist' and setting off right wing alarm bells guaranteed to keep you in your greed-based system forever...

250   Glen   2006 Jul 6, 3:05pm  

DS:

I am not a right winger. On the contrary, I am a proud liberal. But I am a liberal in the tradition of Milton Friedman, not Ted Kennedy.

The US spends about a half a trillion dollars per year on defense and homeland security. This is all part of the absurd big government that I oppose. We could afford much better health and welfare services and/or much lower taxes if we did not choose to funnel such an ungodly sum into essentially non-productive endeavors. As beneficiaries of the US security umbrella, Canada, Australia, etc., spend a tiny fraction of what the US spends on defense. The rest gets funneled into the public benefits you have cited.

251   tsusiat   2006 Jul 6, 3:11pm  

My own ancestors, the group that came over on the Mayflower, were lunatics, members of a lunatic fringe religious sect, the 17th Century equivalent of Hare Krishnas. My other ancestors (as best as I can tell, it is hard to trace the ancestral heritage due to centuries of inbreeding) were French, German, Irish, Scandinavian, and Scots-Irish peasants who came over becaue it was too hard to eke out a living from the depleted soil of the old country.

Virtually all Americans can trace their roots to the lowest of the low. Until recently, the best and brightest — in terms of education, wealth, or accomplishment — almost never emigrated here. Yet as a country, we’ve done just fine. The grandchildren and great-grandchildren of the illegal alien dishwashers of today will be the astronauts and engineers of tomorrow.

It is certainly great to get the best and brightest whenever we can snare one. But even the huddled masses will benefit us in the future. I just think that we cannot overlook the massive costs they involve in the present. I don’t mind bearing the current costs but I don’t want them to grow any bigger than they already have.

Joe,

that was so well said and so true. It is the same here in Canada for most of the people I know, and even the new immigrants are mingling, like a chinese guy marrying a japanese girl, or a punjabi woman marrying an american from Minnesota (a neighbour).

I hate to say it, but the sooner we are all coffee coloured with blue eyes and fizzy red afros, the better as far as I am concerned.

I am way more concerned about new arrivals agreeing on some common courtesies like picking up litter, lining up nicely and watching an occasional hockey game then whether they speak another language at home.

I don't speak at least 4 languages spoken by my ancestors in the last 4 generations - so all these things people hold oh so dear are really transitory.

252   tsusiat   2006 Jul 6, 3:13pm  

On a separate note, HARM, your ignorant comments about me trying to inject race into the debate and being a "shudder" liberal are oh so indicative of your close minded point of view. The fact I mentioned some hillbillies and wetbacks and spics and japs was meant to illustrate these issues are not restricted to the target du jour. Hardly an attempt to inject race into a debate, rather, an obvious acknowledgement the elephant is already in the room.

253   tsusiat   2006 Jul 6, 3:21pm  

DS -

I've made the same arguments here about the stupidity of the US healthcare system relative to systems in social democracies like Canada and Australia. It's pointless to argue with some of the neo-cons here. You and I both know the alternative is better, and cheaper, let the ignorant unwashed masses of neo-con apologists empty their bank accounts, or go around like Astrid with no coverage and a plan to declare bankruptcy if anything bad happens. That's more efficeient and better for the market, right. I'm sure the HMOs love it when customers declare bankruptcy. I'm sure those costs never get passed onm!!

I posted links to all kinds of stats on infant mortality etc, but the HMOs must collect their dough, and of course the US could never operate a set of fiefdoms inefficiently - why we all know monopolistic national health programs are just the first step to godless communism!!

Mind you, monopolistic military organizations are of course the most efficient and deserve unswerving support from that familiar dupe, the american taxpayer.

Yes, this is now the international bubble blog. This is a universal blog.

I declare the independence of this blog from the narrow minded or otherwise parochial points of view of all american posters, unless they are prepared to join the international blogosphere!

I will post the declaration of independence tomorrow.

Unless of course, since it isn't my blog, I'm not allowed to visit anymore... ;)

254   Glen   2006 Jul 6, 3:23pm  

DS said:

deregulation, hmm. the american health industry is already one of the most deregulated in the world. however, it costs approximately twice as much to run it as most ’social-ised medicine’ countries which further provide a guarantee of affordable access to health care. i.e. the US healthcare system, left in the ‘free market’, is twice as inefficient as the public healthcare systems which guarantee a universal outcome of affordable quality healthcare.

You're joking, right? US healthcare deregulated?? Not quite. We have layers upon layers of bureaucratic sclerosis. Consumers have no idea what health care even costs because of the insurance industry, which acts as an intermediary. Health insurance is subsidized in a haphazard and inefficient way by permitting employers to deduct health care premiums, while denying the same benefit to the unemployed or self-employed. Medicare provides incomplete coverage to the old and the poor, but everyone else is left to fend for themselves.

I am not a free market purist, as I stated earlier. I believe in sensible regulation which allows consumers to make informed choices. Neither the US system, nor the social democratic systems, provide for such informed choices. I suppose my ideal scenario would involve a minimal healthcare social safety net for all citizens (for catastrophic care and preventive medicine), with consumers free to supplement this coverage through private insurance or self insurance.

255   tsusiat   2006 Jul 6, 3:26pm  

As beneficiaries of the US security umbrella, Canada, Australia, etc., spend a tiny fraction of what the US spends on defense. The rest gets funneled into the public benefits you have cited.

Glen,

the benefits of US protection are seriously overrated. Our only large potential adversary in Canada is the american military- which, by the way has drawn up plans to invade Canada numerous times, or have you forgotten the War of 1812? If the Chinese were in Alaska and threatening to attack, we could easily mobilize if we had to. Go read some history on who was in the war first in WW1-WW2, who was in Korea, who was in Gulf War 1, who is in Haiti and Afghanistan now... yes that's right, the free-riding Canadians were dying when Woodrow Wilson and FDR were delaying...

256   tsusiat   2006 Jul 6, 3:33pm  

Interesting fact -

most of the american nuclear arsenal is filled with fissionable material from - Canada. Imagine the world that would have existed if that hadn't been readily available for the taking...

257   tsusiat   2006 Jul 6, 3:36pm  

I think I can hear keyboards tippy tappy typing all over California...

258   Glen   2006 Jul 6, 3:36pm  

Tsusiat said:
I’ve made the same arguments here about the stupidity of the US healthcare system relative to systems in social democracies like Canada and Australia. It’s pointless to argue with some of the neo-cons here.I posted links to all kinds of stats on infant mortality etc, but the HMOs must collect their dough, and of course the US could never operate a set of fiefdoms inefficiently - why we all know monopolistic national health programs are just the first step to godless communism!!

Mind you, monopolistic military organizations are of course the most efficient and deserve unswerving support from that familiar dupe, the american taxpayer.

I'm not a fan of monopolistic national healthcare or monopolistic military organizations. There is no free lunch and there are no "free" doctor visits. Someone is paying for it. Just because the cost is hidden, doesn't mean it doesn't exist. I am not necessarily opposed to a wealth redistribution system designed to provide universal care. I just think that such a system should be transparent, with costs and benefits made public to all and with the ability to opt out if a competitor offers a better deal.

259   tsusiat   2006 Jul 6, 3:41pm  

Glen -

the cost isn't hidden - I pay higher income taxes than you, and so do the corporations here.

But not that much higher. Check out the CIA factbook.

And I don't worry about those nasty problems cancer, diabetes, cardiac arrest and all those other little problems that can punch a hole in your bank account, or cause bankruptcy.

Except as health problems.

260   tsusiat   2006 Jul 6, 3:43pm  

Check this out:

the army can't pay the bills, courtesy Yahoo:

http://news.yahoo.com/s/ap/20060706/ap_on_re_us/army_budget_crunch

261   Glen   2006 Jul 6, 3:44pm  

tsusiat said:
the benefits of US protection are seriously overrated.

Good. Believe me, I am all for dismantling the US military industrial complex and replacing it with a balanced budget and a sustainable social safety net. I was trying to make the point that the US spends far too much on its MIC, not that Canada (or others) don't spend enough.

262   tsusiat   2006 Jul 6, 3:46pm  

Glen -

thank you for your point on the MIC, it is rare to find agreement at this blog on such a point, maybe if it is voiced a little more often, it will become a little more acceptable...

...kind of like belief in the housing bubble, that we've all moved on and on from discussing... :)

263   Glen   2006 Jul 6, 3:50pm  

For the socialists on the board:

Should everyone be given socialized medicine? Or only those lucky enough to be born in industrialized (ex-US) countries?

The problem with the welfare state is that it breeds dependency, entitlement and xenophobia. No one wants to let immigrants in, lest they take advantage of "our" welfare benefits (which were disproportionately paid for by "our" rich people). So the socialists, who claim to care about the poor, turn out to be just as jingoistic and exclusionary as the reactionaries they claim to oppose. And they only care about the poor who were born on the same soil as them. Not exactly humanitarians, are they?

264   Glen   2006 Jul 6, 3:52pm  

I've been screened out again! Help?

265   tsusiat   2006 Jul 6, 3:59pm  

Glen,

what are you talking about? Your comment on socialists being more jingoistic is nuts. Economic organization is not the determinant of these things, the well-being of the people is.

Canada lets in more immigrants than the US, and those immigrants are at least as well integrated here into the general population, maybe more...

266   HARM   2006 Jul 6, 4:01pm  

Glen,

Any post with the word "socialist" or socialism in it gets automatically thrown into moderation. Is this because Patrick Kilelea hates socialists? No. It's because it contains the the string "cialis", a popular drug that tons of spam-bots are hawking. Try social-ist intead.

Moderation for any post with 2 or more links is also pretty much automatic.

267   tsusiat   2006 Jul 6, 4:02pm  

Glen-

When you write "social ists" the board sees "cialis" and screens the post as spam. Another insiduous means of preventing geopolitical debate!

268   tsusiat   2006 Jul 6, 4:04pm  

Glen -

are you calling the US a "welfare state"? If so, wouldn't it be better to be a "social democracy" instead?

269   Peter P   2006 Jul 6, 4:19pm  

The Arabs were phenominally advanced in math, astronomy, music, architecture, ceramics and anatomy

Astrology too. They could be the people who invented the whole stuff. Ever heard of Arabic Parts?

One very major application of astronomy is astrology. Why else did people need to know the positions of planets other than the sun and the moon?

270   Glen   2006 Jul 6, 4:23pm  

are you calling the US a “welfare state”? If so, wouldn’t it be better to be a “social democracy” instead?

Perhaps. I confess that I don't know enough about the Canadian healthcare system to make an informed judgment about it. I know that the US healthcare "system" is highly dysfunctional and I suspect that the Canadian system would be preferable. But it is a mistake to characterize the US system as "deregulated." We have a bizarre over-regulated system which encourages overconsumption of healthcare services by the insured (due to the opacity and diffusion of costs) and underconsumption by the uninsured (for obvious reasons).

My original comment re social-ism was in response to DS's comment that "‘deregulation’ is another neoclassical rightwing thinktank weasel word which is code for ‘please let me make even more money for myself without scrutiny or oversight or a governing role to guarantee socially acceptable outcomes’."

I object to this comment because I think it mischaracterizes deregulation. I acknowledge that there is a role for government in policing the market and preventing fraud or abuse. However, I disagree with regulation which is intended to fix prices, "reward" favored groups or engage in social engineering.

I am fairly consistent in my belief that government should only intervene in the market when market forces are insufficient to provide an optimal allocation of resources. Since I have my doubts that a pure market-based healthcare system would provide an acceptable level of minimal care to the poor, I suspect that this may be one area in which the government can legitimately exercise its regulatory power. But DS's wholesale dismissal of deregulation lead me to believe that he believes government, as a general proposition, is better than the market at allocating resources. For the most part, I disagree with this analysis.

271   Glen   2006 Jul 6, 4:30pm  

Another point I would like to make on healthcare:

Many of the examples cited of social-ized healthcare systems seem so wonderful because they transfer the costs of caring for the present generation onto future generations. I suspect that many of these systems will prove to unsustainable over the long haul. Especially in countries like Japan and many western european countries with shrinking populations. But no worries, they will just open the borders and load the costs onto the backs of the poor immigrants.

272   surfer-x   2006 Jul 6, 4:31pm  

I disagree about 300 years ago. In the 17th-18th centuries the middle east was already way behind in all the fields that you mentioned as well as in other aspects of development.

Wow, seems like it is high time for these godless heathens to "face realty" and become another soulless shallow BA yuppie piece of shit.

You continually amaze me; your talents are diverse and astounding. Not only are you one of the leading BA real estate will never go down pundits, but aren't the one also responsible for such gems as work hard and you'll make a lot of money if not you're stupid and lazy?

Maybe you should "face reality" and go back to Craigslist.

273   Peter P   2006 Jul 6, 4:34pm  

Wow, seems like it is high time for these godless heathens to “face realty” and become another soulless shallow BA yuppie piece of shit.

LOL :lol:

274   HARM   2006 Jul 6, 4:40pm  

On a separate note, HARM, your ignorant comments about me trying to inject race into the debate and being a “shudder” liberal are oh so indicative of your close minded point of view. The fact I mentioned some hillbillies and wetbacks and spics and japs was meant to illustrate these issues are not restricted to the target du jour. Hardly an attempt to inject race into a debate, rather, an obvious acknowledgement the elephant is already in the room.

Well, if I misinterpreted your comments at face value (as serious), then I am sorry. But you were the first one to "play the race card" so to speak --even if it was in jest. Though you may not agree with me, I encounter this type of knee-jerk "Liberal" reaction all the time here when trying to discuss immigration rationally. Sort of like automatically bringing up Hitler when discussing the Bush Administration.

275   tsusiat   2006 Jul 6, 4:44pm  

Glen -

fair enough, good response. I personally believe some "social engineering" is necessary and preferable, but your points on the general opacity of the system make sense to me. My cousins married to a guy who used to work for an HMO, and I can tell you, don't even get him started on the benefits of one system versus the other.

The irony is that employment for people like him doesn't exist in Canada. He's not doing that kind of work anymore anyhow, thank god.

As to optimal use of resources, it is an easily proven point that many recent scientific advances resulted from the efficient application of resources by quasi-governmental organizations like the military or NASA.

Of course, these organizations on the grand scale cannot be considered "deregulated", even if elements are more or less so.

The same can be said of healthcare - it need not be "deregulated" to achieve optimal allocation of scarce resoures.

Remember - the interests of doctors are not the interests that should be driving the system - it should be those of feepayers and patients - however the fees are paid.

276   Glen   2006 Jul 6, 4:53pm  

As to optimal use of resources, it is an easily proven point that many recent scientific advances resulted from the efficient application of resources by quasi-governmental organizations like the military or NASA.

Of course we don't know what sort of advances would have occurred if the hundreds of billions spent on NASA and the military had been available for R&D in the private sector. I suspect that all of those highly trained scientists and engineers would have come up with a thing or two in order to make a buck... And the mortality rate of passengers on NASA spacecraft (+/- 5%), for example, is ridiculous when compared to the mortality rate of passengers on private air transport (+/- .0001%).

277   tsusiat   2006 Jul 6, 4:55pm  

Glen-

ouch, touche.

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