I live in the USA and I am concerned about the future. I created this blog to share my thoughts on the economy and anything else that might catch my attention.
November Employment Preview
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On Friday at 8:30 AM ET, the BLS will release the employment report for
November. The consensus is for 183,000 jobs added, and for the unemployment
rate to...
Dr. Strange Move or How I Learned to Love the Bill
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After a couple of years of disinflation, the Fed changed directions and
started lowering rates. By most measures, the economy had been humming
along near a...
NVIDIA Revisited
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On August 26, 2023, 5 days before it a new closing hi at 493.55, I wrote a
critical post about NVDA - the stock, not the company. After that, the
stoc...
Stay away from popular tech stocks, part II
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Last August, I wrote a blog post arguing that largest technology and
internet companies -- Amazon, Apple, Facebook, Google, Microsoft -- would
never grow i...
Updating the HF Indicators
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I posted this over on Seeking Alpha.
Not much good seems to be happening, and I am concerned about the low pace
of construction and a likely end to the sho...
Yes, Well, It's Still a Friday Night
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I doubt anyone is still reading the old stuff, but I have a quiet Friday
night and figured, why not a Friday Night Rock Blog?
I found this one recently (...
Meanwhile, rent is seemingly higher than the long-term average can support.
In my opinion, this does not bode well for housing prices.
Just installed a range In my last flip, ouch I've got my deed, musty
I've got the banker, on the phone Wants his momomomomomomomoney, oh no
I wanna be a landlord, and you can be my renter I wanna be a landlord, and you can be my renter I wanna be a landlord
Flipping was a side hobby, following my man He's in the red, can you believe that? Betting on the condos, played havoc with our cash Makes me feel quite dirty, though we all do sometimes
I wanna be a landlord, and you can be my renter I wanna be a landlord, and you can be my renter I wanna be a landlord
Fiddling much like Nero, leverage overdrive, living in denial Out on the horizon, I think I might be broke Bernanke's on the right path (but Greenspan had forked tongue), or not
I wanna be a landlord, and you can be my renter I wanna be a landlord, and you can be my renter I wanna be a landlord
rent is seemingly higher than the long-term average can support.
Yes. This is exactly why I disposed of all my residential rentals by mid 2006. Even the rent increase expectations won't help much as vaccancy rates will eat any profit at any price point.
There is also a difference in how we react to rising home prices I think.
In 2004, I first turned stagflationist. It concerned me greatly that the price of hard assets was rising so fast and it reminded me what cheap money can do.
I was talking to a neighbor about it. He was downright giddy that his house was rising in value. From my point of view, my house was not rising in value. It was the exact same house. I didn't feel more "prosperous" but instead felt that my remaining savings could no longer buy as much house.
My house is paid off and I never intend to move. At some point, if the exponential trend were to continue, I'd be forced to sell some of my house (refinance) just to pay for some of my house (property taxes). That sure doesn't feel more prosperous to me.
I feel for the renters most of all though. Our government did them a great disservice in order to prop this economy up. Perhaps it was only temporary though (by the looks of the housing bubble potentially popping).
4 comments:
rent is seemingly higher than the long-term average can support.
Yes. This is exactly why I disposed of all my residential rentals by mid 2006. Even the rent increase expectations won't help much as vaccancy rates will eat any profit at any price point.
Rob Dawg,
I can't help but look at those charts and think that people must have convinced themselves that being a landlord is both easy work and easy money.
Man charged with killing landlord in money dispute
http://www.charlotte.com/205/story/292722.html
The difference lies in the difference between being a landlord and and a landholder. For some reason the difference was lost in the last few years.
There is also a difference in how we react to rising home prices I think.
In 2004, I first turned stagflationist. It concerned me greatly that the price of hard assets was rising so fast and it reminded me what cheap money can do.
I was talking to a neighbor about it. He was downright giddy that his house was rising in value. From my point of view, my house was not rising in value. It was the exact same house. I didn't feel more "prosperous" but instead felt that my remaining savings could no longer buy as much house.
My house is paid off and I never intend to move. At some point, if the exponential trend were to continue, I'd be forced to sell some of my house (refinance) just to pay for some of my house (property taxes). That sure doesn't feel more prosperous to me.
I feel for the renters most of all though. Our government did them a great disservice in order to prop this economy up. Perhaps it was only temporary though (by the looks of the housing bubble potentially popping).
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