patrick.net

"the huge rush to buy during the frenzy (leaving less demand for today)"

That is as much their problem as anything. With or without mortgage money "drying up" the consumer has budgeted about as much of their take home income (and then some) for housing as is possible. The wheels were bound to come off.

There is nothing wrong with deferred gratification. One just needs to recognize that enjoyment has a time value too. It is all but balance. But what isn't anyway? :)

Indulgence is a good external motivator. Sometimes you just need to spoil yourself so that you will want to get more. (I blame my Taurus Ascendant for this.)

Delayed gratification on the sell side can backfire in bubbles.

Yep. No one can take away what has already been enjoyed. One must allow himself a reasonable lifestyle. Remember, money represents purchasing power. If it is never exercised, it is same as rubbish.

Yup, I used to caution my friends that there might be warning signs but if I were right I did not expect an orderly decline. Oh, my house is worth 3% less than last year but I can still sell.

Like you point out the wheels do come off as all of the variables seem to hit at once. A year of year decline, high foreclosures, and then the inevitable tightening of credit feeding more and more foreclosures to a market that is not even hungry.

Malcom,

Oh that's right! I remember now, a really glitzy web-site touting it as a "major event"! (Well it sure turned out to be a "major event" now didn't it?)

year over year - sorry

Another observation you made, can you imagine the conversations, the yelling the shouting, the firings that are going on in some of the lender offices right now. Can you imagine the anticipation of the LA and Riverside lenders right now, those auctions are coming up this and the following weekend.

"a market that is not even hungry"

Eat! EAT!!!

Nope, not another morsel. My guess is that most of the people in attendance were bottom feeders "looking for value" (not the momentum players) of the last several years. This could set LA and SD becoming one city back by... another 5 years!

Whoever they were, it was a well advertised event with all of the houses available for viewing. I would say with a reasonable amount of confidence that a good percentage of the buyers today were aware of the auction. They were also cooperating with buyer agents, this is undisputably the new fair market value.

These prices are about 5 year old prices in my onpinon, maybe 2001,2002 range. It will be interesting because one of the houses is near me. I'm not worried because my strategy is to hold, and I bought at the fundamental value so I see it as a chance to move up, but I expect to see a lot of sad faces.

I am most interested in what the one in San Olijo Hills sold for. That was a 900K house with a 500K opening bid.

With Riverside's sales down 45.1% and San Bernadino down 46.7% I wish them well over the next 2 weekends. Oh and I can WELL imagine the temper tantrums going on in office complexes all OVER the Southland!

Too bad most of it is misdirected.

Man, I don't buy the core inflation one bit. My expenses have risen considerably since January, that's for sure. :D

But then, I use gas a corn. And meat. Steaks are going up steadily. :(

What happened to the latest thread?

I think it was deleted, judging from the early responses.
I have to say it was weird and irrational.

I have to say it was weird and irrational.

Huh?

Talk of dreams and Tsunamis and disaster..
The author was implying he/she may be able to see the future :)

So? What's wrong with some entertainment? :)

Nothing. I didn't say it deserved deletion, just weird :)

I don't have anything against entertainment it's just that many people that post or even lurk here aren't self-employed so to have that kind of talk on your monitor at the wrong time could create a whole lot of explaining.

SoCalMtgGuy had to create an entirely new web address just so people could keep up to speed while at work!

Who wrote it?

What did I miss?

You missed a new thread that was weird and scattered, and difficult to respond to. Then, it disappeared.

What did I miss?

Malcolm said the SD market has become unstuck and all hell will soon break loose. Casey evidently can make around $1000/month from Haterz. I think you could fund your kids education from Second Lifers if you try to generate a bit more animosity.

astrid Says:

> FAB What’s a top 5 grad school?

I should have wrote “Business School” since that is what most of my friends talk about when we say “grad school”. It is amazing how many kids start at GSB, HBS, Wharton, Kellogg, and Sloan with liberal arts undergrad degrees and relatively low math skills…

This time it is different. The H1B quota is now back down at 65000/yr. I believe it was close to 200K/yr a few years earlier.

In fact, I heard that 60%+ of H1B hopefuls who applied *on the first day* for FY2008 was rejected. Will foreign students still want to study/work here?

The person (who shall remain nameless) that wrote that last thread asked that it be removed.

How could you have known that? I wonder. ;)

FAB,

Thanks. Though I do somewhat disagree on the substance. I took an investment finance class at Haas one summer and recalled it being relatively easy for this math near-illiterate.

My father has a physics Ph.D and we were talking about math and science last sunday. His view was that the average person does not need to know much math beyond basic geometry, algebra, and understand the basic concept of derivatives and trig. We agreed that the main missing piece from general education is basic understanding for statistics and logic, which is easy for even people of low math skills.

"I should have wrote “Business School” since that is what most of my friends talk about when we say “grad school”. "

I would never even think B School when I hear about grad school. For me it was physics...or math...or finally law.

The only problem in learning about statistics and probability is that it ruins the fun of gambling for the rest of your life....looks too much like homework problems!

His view was that the average person does not need to know much math beyond basic geometry, algebra, and understand the basic concept of derivatives and trig.

If everyone knows how to use the four-function calculator well (square root optional), the market will be more rational.

DennisN Says:

> The only problem in learning about statistics and
> probability is that it ruins the fun of gambling for
> the rest of your life….looks too much like homework
> problems!

I had a professor that called the lottery a “tax on stupid people that don’t understand statistics”…

I had a professor that called the lottery a “tax on stupid people that don’t understand statistics”…

It is about psychological framing. But I welcome stupidity tax. :)

Yah, I got glared at once when somebody said they were going to grad school, I asked what they were studying. When they said to get their MBA, I said "Oh, I thought you meant REAL grad school."

Business school IS a real grad school. There are disputes about whether JDs are real doctors though.

It is a school for graduates.

New thread: So, long, David!

"There are disputes about whether JDs are real doctors though. "

Interesting thought. Peter, why don't you let me try operating on you. Then we both will know the truth of the statement.

Dr. astrid's medical advice*

For any ailment, take a long and almost unbearably hot shower, then collapse into bed tightly wrapped in a comforter, sleep til much better or much worse.

* Does not constitute real medical advice.

GC,

More *medical advice*

Seek professional therapist to discuss your sporadic exhibitionism and unresolved issues about objectifying women.

* Not liable if so called professional therapist turns out to be an analrapist or is otherwise unqualified to provide professional therapeutic advice.

We should replace objectification with objectivism.