Interesting sell off this morning!

[livinincali]

[quote=spdrun]Can’t you buy a few shares A.H.? It did beat earnings, and the HBO direct-streaming deal isn’t huge yet due to customer inertia and other Netflix offerings.

-25% is an overreaction, and it might revert to something like -10% tomorrow.[/quote]

When you’re trading 134x earnings you have to be perfect, actually better than perfect especially on growth numbers. You lost 25% of your share price and you’re still trading at > 100x earning.

[The-Shoveler]

it almost looked like Capitulation.

anyway, Rates below 3.5% anyone?

[spdrun]

Have to admit I did buy a couple shares of NFLX AH. It doesn’t seem to be dropping further from the price at which I bought, and I’m counting on lemmings seeing a “bargain” and bidding it up. KNOCK ON WOOD!

Shoveler – the good thing (as a prospective buyer of RE) that even if rates drop below 3.5%, the average Joe’s confidence will be eroded. Making them less likely to want to buy property (especially if their investments are looking poor) and making them more likely to want to sell. Short if necessary.

I’m not betting on prices dropping to 2011 levels, but something in between then and now would be nice.

[FlyerInHi]

[quote=spdrun]FlyerInHI, IMHO, NY being a “financial capital” is actually a negative because it’s made NY’s economy less diverse than it was historically. It’s still pretty resilient due to foreign investment, people playing both sides of the markets, and controls on apartment purchase down payments (by condo/co-op boards), but it’s less diverse than it was 40-50 years ago. This makes it less resilient and I daresay less interesting.[/quote]

I think that NY today is more people diverse than 40-50 years ago.

Yeah, do you don’t have all the manufacturing in NYC anymore.

[spdrun]

Yeah, I was speaking to economic diversity here, less so to racial/ethnic diversity.

[scaredyclassic]

[quote=spdrun]FlyerInHI, IMHO, NY being a “financial capital” is actually a negative because it’s made NY’s economy less diverse than it was historically. It’s still pretty resilient due to foreign investment, people playing both sides of the markets, and controls on apartment purchase down payments (by condo/co-op boards), but it’s less diverse than it was 40-50 years ago. This makes it less resilient and I daresay less interesting.[/quote]

Interesting comic strip

Julius knipl real estate photographer.

Really gives a feel for what an old nyc was like

[ltsddd]

Should be interesting tomorrow. Walmart and ebay cutting their outlook for the coming holiday season.

[Anonymous]

[quote=spdrun]Personally, I hope that a slowdown in the financial industry would force a diversification of the city into things like tech firms and R&D. A lot of creative effort put towards the finance industry (shifting Monopoly money around) is actually wasted effort — imagine if more of our best and brightest went into engineering and hard science vs finance. We have the world-class universities and a lot of damn smart people.[/quote]

Many people don’t seem to realize that much of the financial system that drives our world had to be invented, just like any other technology.

Example: One of the most important innovations in human history was the notion of the cost of money, i.e. charging interest for a loan. Today we think nothing of the idea that one can borrow money to start a business, etc. But like any other technology, debt capital had to be “invented” and perfected over centuries. And our world today simply would not function without it.

It took a lot of smart people to develop the technology of pricing financial risk — an essential aspect of business lending that happens every day. Naysayers like to point out the failures, but claiming that financial technology is dangerous because of an occasional market crash is like saying internal combustion engines should have never been invented any time Toyota does a recall.

Today we have our best and brightest doing all sorts things that could easily be labeled as “wasted effort.” Social media websites are a perfect example – how many Stanford grads go to work for Facebook?

But the meaning of “wasted effort” is subjective. If millions of people use Facebook, then they must derive some value from it. Same with what goes on in the financial world. If there is someone on the other side of the table paying for something, it has value, by definition.

[phaster]

[quote=FlyerInHi]spd, New York and London are not just the financial capitals of their respective countries, but financial capitals of the world. Beginning with oil money decades ago, the money sloshing around the world is invested in NY, London, Singapore, HK, Dubai.

Financial innovation is a great export for us.[/quote]

personally, I think some of the “financial innovation” is giant step backwards!!!

take credit default swaps for instance (which is basically “insurance” on a bond, that you need not own)

the reason “swaps” are not a good idea, is because it would be akin to you taking out homeowners insurance policy (worth a million dollars) on a “crack” house in detroit (worth a thousand dollars) that you did not own

these “swaps” were side bets, in the market are what caused the US government to take over AIG (basically AIG did not have the “reserves” set aside to to cover the “insurance” on various “bonds”)

Also I don’t see any benefit for financial innovation like “stated income” mortgage loans, etc…

Recall financial deregulation during the ’80 produced the S&L crisis and hit texas pretty hard

Fast forward to what just happened a few years ago, across the nation, cash-outs became ubiquitous during the mortgage boom, as skyrocketing house prices made it possible for homeowners, even those with bad credit, to use their home equity like an ATM. But not in Texas. There, cash-outs and home-equity loans cannot total more than 80 percent of a home’s appraised value.

http://www.washingtonpost.com/wp-dyn/content/article/2010/04/03/AR2010040304983.html

Give me KISS (keep it simple …) in finance!

[scaredyclassic]

[quote=harvey][quote=spdrun]Personally, I hope that a slowdown in the financial industry would force a diversification of the city into things like tech firms and R&D. A lot of creative effort put towards the finance industry (shifting Monopoly money around) is actually wasted effort — imagine if more of our best and brightest went into engineering and hard science vs finance. We have the world-class universities and a lot of damn smart people.[/quote]

Many people don’t seem to realize that much of the financial system that drives our world had to be invented, just like any other technology.

Example: One of the most important innovations in human history was the notion of the cost of money, i.e. charging interest for a loan. Today we think nothing of the idea that one can borrow money to start a business, etc. But like any other technology, debt capital had to be “invented” and perfected over centuries. And our world today simply would not function without it.

It took a lot of smart people to develop the technology of pricing financial risk — an essential aspect of business lending that happens every day. Naysayers like to point out the failures, but claiming that financial technology is dangerous because of an occasional market crash is like saying internal combustion engines should have never been invented any time Toyota does a recall.

Today we have our best and brightest doing all sorts things that could easily be labeled as “wasted effort.” Social media websites are a perfect example – how many Stanford grads go to work for Facebook?

But the meaning of “wasted effort” is subjective. If millions of people use Facebook, then they must derive some value from it. Same with what goes on in the financial world. If there is someone on the other side of the table paying for something, it has value, by definition.[/quote]

I’d say Facebook like heroin takes more than it gives.

Still heroin must have value…
Who’s on the other side of the magic bean trade

[spdrun]

Nothing wrong with stated income/no income as long as LTV is kept to a sane quantity. No more than 50-60% of value with assets to cover a year or two of payments in the bank.

It actually has a place with people whose incomes vary greatly from year to year, but the way it was done before 2007 was asinine.

Interestingly, the Texan law that you mention dated from the 1800s, pre-S&L crisis.

[CA renter]

[quote=spdrun]
Personally, I hope that a slowdown in the financial industry would force a diversification of the city into things like tech firms and R&D. A lot of creative effort put towards the finance industry (shifting Monopoly money around) is actually wasted effort — imagine if more of our best and brightest went into engineering and hard science vs finance. We have the world-class universities and a lot of damn smart people.

Keep in mind that Bell Labs was founded in NYC, so this would not be unprecedented.[/quote]

Could not agree more. We need to move away from speculation and into more productive ventures.

[spdrun]

Well, it’s begun. Even James Bullard, who’s a noted hawk is trying to suck off Wall Street by yapping about pausing the taper:

http://www.businessinsider.com/feds-bullard-on-delaying-qe-taper-2014-10

[outtamojo]

3D printing stocks have been on fire!

[spdrun]

lol. Though I’m hoping for stocks of sign printers to go up soon.

FOR SALE!
FORECLOSURE!
SHORT SALE!

CAR FOR SALE, $100! LOST EVERYTHING IN STOCK MARKET!

PS – told you all some stupid goats would buy NFLX today. It’s up from $330 after hours yesterday to $365 right now.

[Author]

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