Friday, June 30, 2006

Quote of the Week

As I mentioned before, I've been really busy with the stuff that pays my bills. So the stuff that doesn't pay the bills (i.e., this blog) gets put on the back burner for a time.

But anyway, here's a quickie. The Quote of the Week has to be this one made by Leslie Appleton-Young (vice president and chief economist for the California Association of Realtors) which I found via the excellent Ben Jones blog:
"Many in California have reached the dream of living in a million-dollar home without moving."

This must be either the stupidest economist quote I've ever heard or else it is the most brilliant thing I have ever heard an economist say as it concisely sums up the utter insanity and unsustainability of this housing bubble. Tragically, I think it is the former.

Where do I begin? Someone should tell Miss Appleton-Young that it is the million dollar lifestyle that some people dream of, not a million dollar house per se. Besides, in California (the most bestest place ever as everyone knows) a million dollar house is now a run-down, stucco, 2 br 1 ba tract house on a postage stamp-sized lot. Marin is full of them; just go to Tam Valley, Novato, San Rafael, Mill Valley, Terra Linda, Corte Madera to name a few (or visit the Marin POS blog for proof; yeah, we Marinites are really livin' large). The only way for most Californians to realize that million dollar dream is either by selling their million dollar POS to a Greater Fool and moving some place where houses are still affordable or HELOC themselves up to their eyeballs and become eternally indentured debt-serfs. Great.

I think the truth of the matter, and what Miss Appleton-Young really means, is that the million dollar house is the realtors' dream, not the owner's.

So you buyers: Do you really want to finance someone else's dream lifestyle that they didn't earn? Do you really want to reward and bail out someone for their profligate ways and take on their debt burden? Do you really want to enter into this Ponzi scheme at this point in time? You are in the driver's seat now. Take control, show no mercy.


Blogger surfer-x said...

This comment has been removed by a blog administrator.

Jul 1, 2006, 12:00:00 AM  
Blogger fortunateone said...

This comment has been removed by a blog administrator.

Jul 1, 2006, 12:46:00 AM  

Post a Comment

<< Home

Terms of Use: The purpose of the Marin Real Estate Bubble weblog (located at URL and henceforth referred to as “MREB” or “this site”) is to present and discuss information relating to real estate and the real estate industry in general (locally, state-wide, nationally, and internationally) as it pertains to the thesis that recent real estate related activity is properly characterized as a “speculative mania” or a “bubble”. MREB is a non-profit, community site that depends on community participation and feedback. While MREB administrators do strive to confirm all information presented here and qualify all doubtful items, the information presented at MREB is neither definitive nor should it be construed as professional advice. All information published on MREB is provided “as is” without warranty of any kind and the administrators of this site shall not be liable for any direct or indirect damages arising out of use of this site. This site is moderated by MREB administrators and the MREB administrators reserve the right to edit, remove, or refuse postings that are off-topic, defamatory, libelous, offensive, or otherwise deemed inappropriate by MREB administrators. You should consult a finance professional before making any decisions based on information found on this site.

The contributors to this site may, from time to time, hold short (or long) positions in mentioned and related companies.