Builders Association Propaganda in the UT

[admin]

Did you guys see that full page ad in the Union Tribune today by the Builders Industry Assocation? It was basically begging the public to ignore all the bad news about real estate being reported in the newspapers and insisted there was no better timie to buy. What a pathetic act of desparation!

Although I believe the public is stupid, I don’t think this will cause them to reconsider buying real estate. If anything people are more like sheep than purely stupid, and the public perception and market psychology towards real esate is already very negative. No way a biased advertising campaign can change this momentum.

Speaking of biased advertising, this reminds me of those old diamond commercials where they preach that you should spend three months salary on an engagement ring. Of course these ads were paid for by Debeers, who owns something lik 90% of the worlds diamond mines. I sure as hell wouldn’t spend that much on an engagement ring, nor would I marry a woman who expected it. With three months salary I could buy a pretty damn nice new car (of course after taxes I would probably be left with a Yugo.)

[PerryChase]

3 months’ salary on an engagement ring is not that much for a diamond ring. I’ve been diamond shopping with my auntie (she loves jewelry) and I know how much they cost. An upper middle-class woman living in say Carmel Valley would probably expect a diamond ring worth 50k up. Costco even sells diamond rings worth 100k +. I can guarantee you that no pretty woman worth her looks would take any less, ha.ha. (just joking)

In reality, diamonds are a dime a dozen and aren’t worth that much except that the DeBeers cartel limits the supply to hold prices up. Manufactured diamonds are just as good as real diamonds. The “worth” of a diamond is all psychology, marketing and artificially limited supply.

Thank goodness I’m not getting married soon. 😉

[barnaby33]

Diamonds are coated in Blood. Don’t let De Beers fool you that just because some diamonds aren’t, they are clean. They help fuel the most brutal conflicts, mostly in Africa but in other places as well.

I told my ex that I would NEVER buy here a diamond unless it was man made. Even then I wasn’t really interested. Lest you think I am more cowardly now, I have said the same to my current girlfriend.

Josh

[bgates]

Sloppy, guys. Three posts on jewels, and no one has thought to blame the Jews for anything yet? OK, I’ll clean up the mess on this thread, and remind everyone that the Jews (sorry, ‘neo-cons’) are as responsible for the diamond conflicts in Africa as they are for the WTC attack, and for the live-action Rocky and Bullwinkle movie not staying closer to the spirit of the cartoons.

[Anonymous]

Josh, if you went along with what’s customary and expected, maybe you’d still be married! Did you ask your ex-wife to dress in nothing but bearskin, too, because of slave labor involvement with cotton?

[Anonymous]

I wouldn’t be surprised if a lot of people actually follow that three months salary BS. Unfortunately, women in our culture our brainwashed at a young age to expect espensive material items, particularly the diamond engagement ring and a big wedding. That said, I highly doubt that very many rings are upwards of 50K, there are very few people who could actually afford that. Of course nowadays with HELOCs??

Brings up another question to ponder, how much has the jewelry industry benefitted by the housing boom? You would think it had to have a huge effect, especially with people being able to purchase more “luxury” items. I am sure the housing crash will have significant impact on the Debeers bottom line. I don’t think they are public so there is probably no way to know exactly.

[mrquoi]

deadzone,

I’m not sure any normal woman is going to want to marry a guy who offers her a Yugo as a sign of enduring affection. Can you picture it?

scene: deadzone and the woman of his dreams at the very romantic Bertrand’s at Mr. A’s. Sun setting in the background. Good jazz playing. Her eyes are twinkling. His palms are sweaty.

deadzone: Sweetheart, I want nothing more in the world right now than to spend the rest of my life with you. I dream that after the housing market crashes, you and I will move into a beautiful home and start a beautiful family.

sweetheart: Oh deadzone. (tears, they smooch until the waiter coughs — about a dozen times).

deadzone: To show how committed I am, I bought us a Yugo. You can drive around with the baby deadzones in it. (restaurant goes quiet, lights go up)

sweetheart: (frowns, cries) Deadzone, I think you have made a mistake. A man with a Toyota Tercel, a Ford Focus, a Honda Civic — even one of those Hyundai’s with the 10-yr warranty. But a man with a Yugo is no man for me. (She gets up, puts money for her part of the dinner on the table, walks off.)

Seriously, the smartest way to go about the engagement diamond thing is to ask your mom or grandma for a sentimental piece of jewelry and to give that. (Assuming you have a good relationship with your family and their taste does not include cubic zirconia.) Or, to buy a small rock and to explain that you hope that as the anniversaries roll in you hope to match that piece with earrings, bracelet, etc.

[PerryChase]

That was a good screenplay, mrquoi.

Perhaps we should bring back the dowry.

Given enough money, a man, no matter how ugly he is, can find a wife. A woman needs beauty and charm above all, if not, perhaps a big dowry would help. 😉

Did you guys read the SD Union article? Even the White House is now telling use that the worst of the housing slump may be over.
————

http://www.signonsandiego.com/news/business/20061219-1157-bush-economy.html

In terms of the crumbling housing market “most of the action has already played out,” Edward Lazear, chairman of the White House’s Council of Economic Advisers, told reporters.

Still, weakness in the housing sector will be probably visible in the months ahead, he said. “But hopefully that will end in the relatively near future and we’ll be able to move back to a period of positive economic growth in the housing sector,” he added.

The White House expects the economy to log fairly solid growth for all of 2006 – just over 3 percent – despite the cooldown in the once- sizzling housing market this year. Next year, the Bush administration believes that economic growth will slow slightly to around 2.9 percent and then pick up the following year.

Of the housing slump, Lazear said, “it looks like the precipitous decline that we saw earlier is not going to occur in 2007.”

He also struck a hopeful note that energy prices will be more stable next year. Surging energy prices in the spring of this year were a factor in belt tightening by consumers and businesses, which slowed overall economic activity. Later in the year, energy prices dropped but have since crept up a bit.

The volatility in energy prices this year was “an anomaly” that Lazear said he didn’t expect to be repeated next year.

Looking ahead when the Democratic-controlled Congress, convenes in early January, Lazear said the White House will continue to press lawmakers to make Bush’s tax cuts permanent. Asked whether tax increases could plunge the economy into recession, Lazear replied “absolutely” and said he would be concerned about their “very detrimental effects.”

[(former)FormerSanDiegan]

Of the housing slump, Lazear said, “it looks like the precipitous decline that we saw earlier is not going to occur in 2007.”

Whew ! That was easy. Let’s go out and buy houses. Yippee.

Do you think they might have a different definition of “precipitous decline” than I do ???

[The-Shoveler]

Nor_LA-Temcu-SD-Guy

While your at it, Have the White house explain how I am going to afford an 800K house on my salary ( and the wife, kids, and still save for retirement etc…), no maybe don’t do that , they will try to sign me up for one of those interest only loans or worse.

[Anonymous]

Edward Lazear taught Macroeconomics at the U. of Chicago GSB back in the fall of ’90, and I was fortunate to be in his class. Outstanding teacher; really clear and insightful.

It must be tough being in a public position of responsibility when you have a brain, and know that you can’t tell the truth ’cause it will scare the heck out of everyone. Bernanke, Lazear, and Paulson have tough jobs.

[jztz]

“Don’t let De Beers fool you that just because some diamonds aren’t, they are clean.” — I read about blood diamonds and De Beers’ effective control of the diamond trade a while back and decided that I’d never buy/wear a piece of diamond. Why would anyone buy into a shopping budget guideline -“3 Month salary” promoted by a retailer/vendor? No wonder so many people are in debt.

Also, taking a high price for beauty/worth reflects a lack of creativity.

I also read about how much debt the current college grads are carrying upon graduation. There is no question that college costs have skyrocketed, but looking at some of the debt number I can’t help but think that these kids probably lived a middle-class lifestyle that they were used to while in college financed by debt. I wonder how many of them will follow that 3-month salary guideline when they need every penny to meet living expenses and paying their student loans.

[PerryChase]

jg, should we add Rice, Gates, Cheney and Bush to the people having tough jobs? If the White House is not telling us the truth about Real Estate, I wonder if they are telling us the truth about other things….

I’ll surely remember Lazear’s comments this time next year.

Does being in a position of responsibility mean hiding the truth so the citizenry is left unprepared for the what’s to come?

[startingout]

People are crazy. Oh honey, let’s start a wonderful life together $50,000 in debt (after a $30K wedding, $10K ring, $10K honeymoon). Whatever happened to the union of two sould being more important than having all the designer bells and whistles for a wedding, right down to monogrammed napkins that people will use and throw away?!!!

[Anonymous]

Being in charge is tricky, PC.

Fathers, CEOs, military officers, or any person in a position of responsibility, must display coolness, calmness, and resolve, no matter how difficult things are. Lots of humans are weak, and panic when they see weakness or uncertainty in a leader. Also, as you know, when a leader allows himself to panic, he immediately has difficulty thinking.

The good Lord gave us brains to figure out what is REALLY going on, no matter what words we hear or read. For those who can’t figure out what is really going on, the coolness, calmness, and resolve of the leader offers comfort.

Remember, the objective of the leader is to be effective. Sometimes, a leader has to dance around the truth to keep folks moving in the right direction.

That’s my read of human nature, and it’s why I am a skeptic of, and place little credence in, public pronouncements. I, instead, look to actions and data to get a sense of what is really going on.

[Author]

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