Mish: Crack Shack or Mansion Game
You must play! Here's the direct link.
Crack Shack or Mansion?
Mish got 10 out of 16 right. I got 6 out of 16 right. Together we did no better than a coin toss.
Hey, at least I got the one with the police actually in the picture right though. Good grief!
Here's a comment from Mish's link.
12/16. I blew the first two, then had an "attitude readjustment". I assumed that reality and insanity were upside down - just like some homeowners will be when demand softens for copper and coal. - sotruth181
I definitely would have done better had I adapted, but the Illusion of Prosperity has standards to maintain.
There will be no swapping reality for insanity on this blog if I can help it. If the mansion looks like a crack shack, then the mansion looks like a crack shack.
Stag,
ReplyDeleteThere are three rules to remember when it comes to real estate.
1. Cheap credit
2. Cheap Credit
3. Cheap Credit
Interestingly, the above three CONditions also create "savings" gluts. You know, the CONcept that the world has so much in excess savings that people can no longer afford to put any money down when buying real estate.
The savings glut theory can be used to explain just about anything. Seriously. For instance, why can't people today afford the same houses that their parents and grand parents COULD afford? You guessed it, savings glut!
Why are 15% of mortgaged homes either delinquent or in foreclosure? Savings glut!
Why are record numbers of Americans on food stamps? Savings glut.
Why is household equity in residential real estate at a record low. Once again, savings glut.
Debt is the life blood out our eCONomy.
Global warmiing - savings glut.
etc.
mab,
ReplyDeleteThe savings glut theory can be used to explain just about anything. Seriously.
I'm game.
Why did the Titanic sink?
To meet this schedule the Titanic could not afford to slow down.
Savings glut! Time needed to be saved.
Why Did the Titanic Wait 45 Minutes Before Sending a Distress Signal?
Mr Maltin said: ''They (the ship's authorities) may have been considering the public relations aspect of it and was it going to sink or not because then they would have rather kept it quiet, there may have been a slight bit of delay.''
Savings glut! They were trying to save the ship's reputation.
Your theory seems to hold water. Pun intended.
13 right! Just wanted to brag...
ReplyDeleteAlso, I have family and friends in Montreal... they are unfortunately all convinced that real estate is going to continue to rise. People are investing in suburban real estate (just like people did here in SoCal)...
ReplyDeleteAlthough Canadian mortgages tend to have higher down-payments, they cannot be fixed past 5-years!
So if commodities crash, $CDN drops, interest rates rise, housing bubble bursts...
Anyone else see this as a plausible scenario in the next few years?
Remy,
ReplyDeleteAnyone else see this as a plausible scenario in the next few years?
No way I'm going to bet against someone with an 81.25% success rate of spotting the difference between crack shacks and mansions. ;)
12/16 not bad.
ReplyDeleteI don't think it was a savings glut in the US and Canada though. I think it was a savings glut in the east and in nations with a sovereign wealth fund.
Also, federal reserve expansions look like savings gluts if productivity is increasing strongly.
Doc Merlin,
ReplyDeleteNice score. My girlfriend also managed to get 12/16. She worked for the housing authority at one point in her life though.