Home › Forums › Financial Markets/Economics › Vanity Fair – Is Silicon Valley in Another Tech Bubble?
- This topic has 7 replies, 7 voices, and was last updated 8 years, 6 months ago by Coronita.
-
AuthorPosts
-
September 7, 2015 at 10:06 PM #21672September 7, 2015 at 10:28 PM #789198CoronitaParticipant
I don’t know if it’s a bubble or not, but I was just up there to deal with a rental….and the malls were packed…I mean, I’ve never seen so many new stores, restaurants, etc, and new strip malls….It’s crazy……I miss Silicon Valley, but I wouldn’t be able to afford to live my quality of life down here in Bay Area right now, unless I was fortunate enough to hit the stock option jackpot.
September 7, 2015 at 11:53 PM #789199spdrunParticipantG-d, I hope so, because bubbles pop making for fun opportunities.
September 8, 2015 at 5:45 AM #789200flyerParticipantHave read quite a few articles concerning this topic offering viewpoints on both sides of the equation. As the OP, all are fascinating.
Relatives who live in the Bay Area are somewhat ambivalent. On one hand, they are loving the show and the financial rewards, but on the other hand they’ve expressed they miss life as it used to be. Whatever happens–they aren’t planning on going anywhere–whichever direction the future takes.
It will definitely be interesting to watch how things play out from both an investment and sociological perspective, and to see if things really are different this time or not.
September 8, 2015 at 7:02 AM #789201The-ShovelerParticipantWhile it may be a bit frothy I don’t think it is a bubble (at least not in the way it was in 1999).
Anyway IMO.September 8, 2015 at 7:40 AM #789202mixxalotParticipantIt is until the funny Chinese money runs out. When I lived in the bay area, open houses were 99% dominated by Chinese and Indians. I moved due to much higher living costs than San Diego and lower quality of life. Bay area where I rented in Mountain View was not bad but my neighbors were constantly always working six days a week or busy with kids.
In San Diego I pay 2K less than bay area and people are more laid back. Traffic is just as bad now though here as it is in the bay area but fortunately I don’t have to drive that much in it.
September 9, 2015 at 4:03 PM #789221joecParticipant[quote=mixxalot]It is until the funny Chinese money runs out. When I lived in the bay area, open houses were 99% dominated by Chinese and Indians. I moved due to much higher living costs than San Diego and lower quality of life. Bay area where I rented in Mountain View was not bad but my neighbors were constantly always working six days a week or busy with kids.
In San Diego I pay 2K less than bay area and people are more laid back. Traffic is just as bad now though here as it is in the bay area but fortunately I don’t have to drive that much in it.[/quote]
I’m not sure how it is now in SD, but I think if someone looks at all the recent buyers in CV of new developments, I’d guess that close to 80%+ will have an Asian or Indian last name too…
Last open houses I went to were probably close to 90% asian (incl. indians)…flu can probably confirm in his CV hood.
Not 99% (probably exaggerated…but not that different from the bay area I think).
September 9, 2015 at 4:35 PM #789223CoronitaParticipant[quote=joec][quote=mixxalot]It is until the funny Chinese money runs out. When I lived in the bay area, open houses were 99% dominated by Chinese and Indians. I moved due to much higher living costs than San Diego and lower quality of life. Bay area where I rented in Mountain View was not bad but my neighbors were constantly always working six days a week or busy with kids.
In San Diego I pay 2K less than bay area and people are more laid back. Traffic is just as bad now though here as it is in the bay area but fortunately I don’t have to drive that much in it.[/quote]
I’m not sure how it is now in SD, but I think if someone looks at all the recent buyers in CV of new developments, I’d guess that close to 80%+ will have an Asian or Indian last name too…
Last open houses I went to were probably close to 90% asian (incl. indians)…flu can probably confirm in his CV hood.
Not 99% (probably exaggerated…but not that different from the bay area I think).[/quote]
There is probably a reason for this, as the Chinese economy tanks. People keep trying to draw parallels between the re purchases now from Chinese versus thosenmade from Japanese Taiwanese and Korean back in the 80ies and 90ies…but I think the motivation for individual purchases are completely different. Back when the Japanese/Koreans/Taiwanese were buying re from the 80ies and 90ies most of it was speculation and very little of it had to do with people wanting to relocate here. I think a lot of the re purchases happening on the high end is more motivated out of fear that when the economy in china tanks, the 1% wealthy there are fearful they will be the scapegoat for all the government’s failed intervention policy. And the fear goes all the way from being fearful that the government will simply confiscate the wealth..to fear that the government will confiscate and throw people in jail..So I think at least for the wealthier, they are parking their assets in the US and elsewhere where it is out of reach of the Chinese government..and are probably working on immigrating here…….I said this many times. Things might be pretty screwed up here, but the rest of the world is much more screwed up. Just a few days ago, I think the Chinese government jailed a few people that had a hedge fund that was shorting the markets. So you can bet as the markets tank there, the wealthy will have a big target on their back and the environment will increasingly get more hostile towards them… especially if the regime changes…
The people buying multimillion homes in the US are not your average middle class worker in china. They really can’t afford it here. Its all the wealthy buyers. And I think the way they look at it is…buying re in the u.s. might eventually cause them to lose 10-20% if home prices decline. But its still better than losing 100% of their wealth by keeping it in china if the government increasingly gets more hostile towards them…
-
AuthorPosts
- You must be logged in to reply to this topic.