patrick.net

Grateful Coffin Says:

"I thank some members. I wish to name no names for fear of inciting unhealthy feelings and karma."

"Let me repeat. I do not code for living. I am not a programmer. Get it??"

Well, yes. But it took me a while.

At dawn I went outside and sat naked on a rock eating a bowl of Grape Nuts cereal while contemplating your words.

As the birds sang and crickets chirped, and the first lambent rays of the glowing morning sun reached skyward, I got that "Aha!" experience.

You don't write code, but you are a master coder. You are also a spiritual master of whole wheat toast, stone ground corn for Tostitos, and alfalfa based macrobiotic spirituality. A true child of the spheres working on astral planes of Windows and Linux-caliber computer geekdom...

Yawn...

You've got to get up earlier than that if you think you're going bullsh-t the people on this site.

Just noticed a few trends locally here in OR.

I don't want to go so far as to say they are "alarming" or "disturbing" more..... telling I'd say. On WED our local paper comes out and the Coldwell Banker RE insert consisted almost exclusively of NEW homes. Now, to be fair, this little publication has been dominated by "new construction" listings for some time. But it always had plenty of older inventory to thumb through as well. Now? Out of 8 pages you could count the older homes (the ones you recognize from last 9 months) on one hand! Additionally they have completely dropped the language of "2 years new!" "Built in 2004". "Just completed in 2005". "Still time to pick your colors". Gone. No more. I guess if it looks new, it IS new! What's up?

Here's my guess.

Given that most all of the listings that have actually sold here in the last 9 months or so have been "new" the builders now have the leverage to to tell the RE firms how to run their business! Over the last year we have written out checks to you totaling over 500K (or whatever) and we want the lion's share of the "ad space"! We want you to dedicate your agents time to moving OUR inventory, not mom and pop homedebtor's!

And the firms are listening. They reason; "Why throw all of those dollars at fickle "homedebtors" with little or no "wiggle room" to come down to a price where we might actually be able to sell it?" Why deal with FB's that have unrealistic expectations? Why pull your hair out explaining away the shortcomings and obvious flaws of an "older" home on a busy street? Why have fickle income streams b/c homedebtors still think this is a seller's market refusing to do even the most necessary repairs. Why deal with the liability of a heating system on it's last legs or a water heater gone kaput? Who needs Ma and Pa Homedebtor PERIOD?

These RE firms need to look out for themselves and what ultimately will ensure their own survival. They've seen the future, and Ma and Pa ain't it.

astrid,

I am so flattered that you would be left with the impression that I call on Fortune 500 companies! (I wish). Oregon has but a handful of noteworthy players and their retirement plans get solicited from major players back east (not a "work at home" independent). It might have been nice to leave the "regulars" here with that impression but I'm always careful not to misrepresent myself. The truth is that my sweet spot is employers w/ 10-50 plan participants. So I mainly do battle against third party administrators and other independents. Woohoo!

In the past (as a firm employee) I have called on major employers and my experience is that it is every bit as bungling as you describe the CCP. Sorry, but it's true. In my position, we can still go into the backroom, puff on stogies and "cut a deal". I kind of like it that way.

DinOR,

I can certainly see that. Your deal cuttings sounds a lot better than endless calls to an endless series of pinheads.

astrid,

Thanks but there are still plenty of calls and plenty of pinheads. I was curious though, was there a "system" problem? There were no posts for about an hour, or are my posts really that boring?

Anyway, not to "bump" my own post but has anyone else seen evidence that your local RE firms seem to be abandoning Ma & Pa Homedebtor in favor of the promise of higher volume (lower margin) builder inventory? George or anyone else care to weigh in? In the future I promise to insert references to gladiators and domination in an effort to "spice things up a bit"!

Hmmm,

Anyways, I realized that my last comment may have just offended all the money people out there (AKA the ones who may one day hire me), so I need to emphasize that not all corporate accountants, tax lawyers, etc., are pinheads. Only pinheads are pinheads.

Okay, now I've permanently offended and alienated the pinhead (don't confuse us for coneheads!) population.

DinOR,

Builders certainly seem willing to offer the agents more. I've heard quite a few 4% and bonus offers to buyer's agents. Ma and Pa home flippers are too cheap to offer those sorts of incentives. So it's no surprise that the realtor dollars are going towards selling what'll get them the most money.

So anyway I was on my way to the next futile, unproductive and embarrassing sales appointment and while I was rumaging through my jazz and blues cd's what do I come across? A "Best of Adult Entertainment" audio CD? Well, suffice it to say when I arrived at the office I was eager to check out the new "talent" at the receptionist desk and let's just say I was not disapointed! When "Sue" mentioned that my meeting had been cancelled and that there was no one else there for me to talk to but her........

Is that better?

:) I'm holding out for the milk delivery man and Jake Gyllenhaal.

Uh, thanks for the input.

There wouldn't be anyway I could get that last post deleted, would there?

Just kidding! It's hard to compete with the ahem, preferences of ancient Greece and "chef quality" ginsu knives when you're "just a sales guy" with a lower middle class upbringing. I'll go back to being just plain old DinOR if no one minds.

Uh, so how bout those White Sox heh?

George,

Some here have speculated that it's not so much that gold has risen but that the dollar has slipped? Any comment on the alleged realtor "abandonment" of Mr. and Mrs. FB in favor of "commercial production"?

DinOR,

If my choice of desert island companions were you, Jakey, or the milkman, I'll take you. We can plot out a pyramid scheme or a reality show while waiting to be rescue.

SQT,

True enough. Actually, I too find Jackman to be much more attractive and a better actor than Jake Gyllenhaal, but somehow I got myself stuck on that Gyllenhaal conceit.

I probably don’t need to mention this, but gold hit a new 25-year high of $727 this morning.

Go Go Go!

I am not happy. It is going up too quickly. I am not able to accumulate fast enough. :(

Must keep buying. $725 is cheap.

NOT INVESTMENT ADVICE

SP,

I was just making it up. There was about an hour between posts (which usually only occurs between 3:00am to 4:00am PST) so I just threw that in there for a goof. I've made commitment to all here that my dry, almost reserved commentary will resume as before and I think it was well rec'd.

astrid,

Me and you kid, me and you. It's funny that you mention that b/c "Lost" is the only non-financial show I'll watch! I would have to admit though that I would be the castaway that everyone gave up on. Running a "still" and selecting just the right coconuts is demanding business! Mysteries? The meaning of life? I've already found it and it will be ready in about a week. Mrs. DinOR HATES the show though.

I've got 2oz of gold Eagles and 60oz of silver eagles in my '90s Honda. Apparently they're worth more than my car. Anybody want to make an offer before I take them to the coin shop?

Can one of you super savvy financial guys riddle me this, why when the FED rate was 1% or so mortgages were 5% or so, a 4% spread. Now that the FED rate is 5.25%, why are mortgages only 6.6%, a 1.35% spread. Who is taking the hit?

Surfer X,

You have struck a nerve sir! I was wondering the same thing at about 5:00am this morning! I have NO logical explanation and there aren't any straight shooter type mort. brokers that I know of so let me make a few calls. I'd been wondering the same thing myself. I mean wtf?

The spread on ARMs has stayed the same (i.e. ARM prices have increased with the FED rate):

http://library.hsh.com/?row_id=93

But 30-yr fixed have not moved up:

http://library.hsh.com/?row_id=92

Basically, this is the bond market saying they expect a recession and a future drop in rates. That or else it's just foreign banks buying MBS without realizing / factoring in principle risk.

milk delivery man and Jake Gyllenhaal

MMMMM cowboy love, Astrid do you have chaps?

surfer-x,

The funny thing is that I've yet to watch Brokeback Mountain. I've read both of Annie Proux's short story collections, and I do want to watch BM. But just haven't had the opportunity.

You can count me in as a Donnie Darko geek. :D

Flat Yield Curve?

X,

The "float" on the 30 yr. (since it's re-introduction) is only about 50 bil. With pension assets buying up all they can get their hands on it's definitely narrowed the spreads. I'm on hold.

Astrid, we are filming "brokeback beach" down here in $anta Barbara. A rousing tale of the love that dare not speak it's name. Two trustafarians meet and fall in love, kind of a gay Romeo/Juliet, but with better cars.

Peter, I’m with you on gold, but this current move is getting out of hand, especially in the base metals like copper. I bought a bit more at $670 but think we’re due for a sharp 5-10% correction and will wait for that before picking more up.

Conor, no insult intended, but if 25-year olds are day trading gold, that's a sign of the peak.

House/stocks/gold - whatever you're going to invest in, buy and hold. Churn and transaction costs will kill you.

X,

Yield curve plus micro-economic stuff that affects mortgage rates: supply & demand. If less people are demanding them then the "price" (premium, spread, whatever) will have to come down.

X,

From the "bond desk":

The 30 yr. FRM is not really affected by the Fed. Funds Rate.

Fed. Funds Rate has a more immediate impact on short term money. Namely ARM's.

30 yr. FRM is more closely tied to the 10 yr. and right now the Bank of China as well as the bank of Japan have continued to bid that up. (So far)

However; (and this will make your day) the spread banks are taking it right in the "brokebutt beach" if you get my meaning. Same said bond desk is moving out of financials. Duh!

x,

That's fine. As long as Stephen Merritt scores the movie.

FRIFY,

I think that Conor has well displayed that he is not just another 20 something. You go Conor!

Peter P,

As a sample last night I tuned into 5 Bay Area AM radio stations between 9:30pm and 12:30am while doing some other work. 4 were talk format, 1 news format. All had at least one "buy gold now before it's too late" ad. One station in particular had an ad about every other break, and from different companies, and saying things like "Gold going to $5,000/oz! Better buy now".

Common support were stylized "Gold-to-DOW" correlations. Interestingly, no direct attacks on the dollar. Probably a weird marketing/advertising thing there about not offending anyone's national pride. After all, these ads were clearly aimed at "lay people", not financially astute investors.

I then flipped through late night television before hitting bed (I rarely watch TV). I found two gold-profit infomercials running, although one was gold + copper, no risk, make $ without using your own $. Do it like the hedge-funds do! kind of stuff.

I'm not saying it's a bubble yet, but it's starting to look "frothy".

X,

I think the FED is at 5% even, no? Doesn't matter, just as long as we have an ample supply of bubble bucks!

Btw, who will be playing the lead roles in Broke Butt Beach?

Surfer-X should direct it.

x,

I'd pay good money to see Broke Butt Beach, starring Takeshi Kaneshiro and Sean Maher. (of course, I'd pay good money to see any movie with those two)

DinOR, yeah 5%. But come on, if the fed keeps raising rates it makes more sense to put your money elsewhere, if you are getting what 4.7% holding very risky housing notes, and you can get 4.75% in a freaking CD, come on man, do the math. Makes no sense to me. But then again I pay everything off. So far the tally is student loan only, 41K at 3.75% fixed. I abhor debt but see no reason to pay this one off as it is technically now free money.

Brokeback Beach is currently filming. Seems that "Chad" is upset that "Blain" keeps diddiling the cabana boys.

Just got back from the coin store with 1/200th of my post-bubble house in my pocket. I'm sure I've left some money on the table for the next guy. Enjoy the butterflies and the told-you-sos for the next 0-6 months and we'll talk in a year.

X,

Agreed! And yes, it's basically free money. Claim as ded. int. as usual. I think my daughter's loans will run quite a bit more than 3.75%!

Just the idea of low budget version of BBM filmed in SoCal reminds of those cheesy Bikini Car Wash, or Bikini Drive-Thru movies they used to run at 3:00am on USA. You know, where you see uncredited extras playing 2 or 3 roles and they don't even bother to take the pains to conceal it?

You know the deal! We've got to raise $25,000 before the bank will foreclose on my drifty, but likeable uncle! He runs the last drive-in movie/hot tub hotel/taco stand in SoCal! Let's get to work girls! Alright already. Cue the "clueless" guy with coke bottle thick glasses.

@SP, the all time best has to be "Moo Goo Guy Poon"

SP,

Do Elitists come with personal intellectual property lawyers? That's a lot of trademarking you're doing. :)

Gold will get busted.