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January 10, 2008 at 3:17 PM in reply to: RSF kicking out Fairbanks Ranch, Cielo, Crosby, Bridges, Whispering Palms #133752January 10, 2008 at 3:17 PM in reply to: RSF kicking out Fairbanks Ranch, Cielo, Crosby, Bridges, Whispering Palms #133765
davelj
Participantyojimbo, yes, it’s the same thing as your Nike analogy, with the key being “albeit on a smaller monetary scale.” If you spend an extra $15 to buy that Nike shirt it’s no big deal for most people. In other words, the additional “perceived – but not real – luxury” is relatively inexpensive. However, if you spend an extra million dollars or two just to live somewhere with the proper address (with no material advantages) then… well… that’s an extra million or two. Now if you’ve got $25 million plus, no big deal – that’s not necessarily crazy to me; you’re talking about a rounding error. But if you’re the average person doing this, with, say, a $10 million net worth, then spending an additional 10%-20% of your net worth just for the address is… well… crazy. The degree of insanity is inversely proportional to the buyer’s net worth. In my opinion.
January 10, 2008 at 3:17 PM in reply to: RSF kicking out Fairbanks Ranch, Cielo, Crosby, Bridges, Whispering Palms #133816davelj
Participantyojimbo, yes, it’s the same thing as your Nike analogy, with the key being “albeit on a smaller monetary scale.” If you spend an extra $15 to buy that Nike shirt it’s no big deal for most people. In other words, the additional “perceived – but not real – luxury” is relatively inexpensive. However, if you spend an extra million dollars or two just to live somewhere with the proper address (with no material advantages) then… well… that’s an extra million or two. Now if you’ve got $25 million plus, no big deal – that’s not necessarily crazy to me; you’re talking about a rounding error. But if you’re the average person doing this, with, say, a $10 million net worth, then spending an additional 10%-20% of your net worth just for the address is… well… crazy. The degree of insanity is inversely proportional to the buyer’s net worth. In my opinion.
January 10, 2008 at 3:17 PM in reply to: RSF kicking out Fairbanks Ranch, Cielo, Crosby, Bridges, Whispering Palms #133856davelj
Participantyojimbo, yes, it’s the same thing as your Nike analogy, with the key being “albeit on a smaller monetary scale.” If you spend an extra $15 to buy that Nike shirt it’s no big deal for most people. In other words, the additional “perceived – but not real – luxury” is relatively inexpensive. However, if you spend an extra million dollars or two just to live somewhere with the proper address (with no material advantages) then… well… that’s an extra million or two. Now if you’ve got $25 million plus, no big deal – that’s not necessarily crazy to me; you’re talking about a rounding error. But if you’re the average person doing this, with, say, a $10 million net worth, then spending an additional 10%-20% of your net worth just for the address is… well… crazy. The degree of insanity is inversely proportional to the buyer’s net worth. In my opinion.
January 9, 2008 at 4:47 PM in reply to: Dow +146.24,Nasdaq +34.04. Anyone feel like commenting about this today? #132970davelj
ParticipantIn the average post-war recession, earnings on the S&P have declined by 15%-20%. It’s only got a low P/E until the “E” goes away…
January 9, 2008 at 4:47 PM in reply to: Dow +146.24,Nasdaq +34.04. Anyone feel like commenting about this today? #133157davelj
ParticipantIn the average post-war recession, earnings on the S&P have declined by 15%-20%. It’s only got a low P/E until the “E” goes away…
January 9, 2008 at 4:47 PM in reply to: Dow +146.24,Nasdaq +34.04. Anyone feel like commenting about this today? #133160davelj
ParticipantIn the average post-war recession, earnings on the S&P have declined by 15%-20%. It’s only got a low P/E until the “E” goes away…
January 9, 2008 at 4:47 PM in reply to: Dow +146.24,Nasdaq +34.04. Anyone feel like commenting about this today? #133224davelj
ParticipantIn the average post-war recession, earnings on the S&P have declined by 15%-20%. It’s only got a low P/E until the “E” goes away…
January 9, 2008 at 4:47 PM in reply to: Dow +146.24,Nasdaq +34.04. Anyone feel like commenting about this today? #133262davelj
ParticipantIn the average post-war recession, earnings on the S&P have declined by 15%-20%. It’s only got a low P/E until the “E” goes away…
January 9, 2008 at 2:37 PM in reply to: Dow +146.24,Nasdaq +34.04. Anyone feel like commenting about this today? #132845davelj
ParticipantThere were rumors late in the day of a “surprise” rate cut from the Fed coming imminently. It’s so completely idiotic that it must be true. That’ll get the market all lathered up until it realizes that it won’t help.
January 9, 2008 at 2:37 PM in reply to: Dow +146.24,Nasdaq +34.04. Anyone feel like commenting about this today? #133032davelj
ParticipantThere were rumors late in the day of a “surprise” rate cut from the Fed coming imminently. It’s so completely idiotic that it must be true. That’ll get the market all lathered up until it realizes that it won’t help.
January 9, 2008 at 2:37 PM in reply to: Dow +146.24,Nasdaq +34.04. Anyone feel like commenting about this today? #133036davelj
ParticipantThere were rumors late in the day of a “surprise” rate cut from the Fed coming imminently. It’s so completely idiotic that it must be true. That’ll get the market all lathered up until it realizes that it won’t help.
January 9, 2008 at 2:37 PM in reply to: Dow +146.24,Nasdaq +34.04. Anyone feel like commenting about this today? #133099davelj
ParticipantThere were rumors late in the day of a “surprise” rate cut from the Fed coming imminently. It’s so completely idiotic that it must be true. That’ll get the market all lathered up until it realizes that it won’t help.
January 9, 2008 at 2:37 PM in reply to: Dow +146.24,Nasdaq +34.04. Anyone feel like commenting about this today? #133135davelj
ParticipantThere were rumors late in the day of a “surprise” rate cut from the Fed coming imminently. It’s so completely idiotic that it must be true. That’ll get the market all lathered up until it realizes that it won’t help.
davelj
ParticipantIt’s extremely rare to see a stock as widely followed as Countrywide fall to the degree it’s stock did today on a “rumor” that wasn’t ultimately substantiated to some degree. I suspect CFC is right on the brink. Generally, where there’s smoke, there’s some degree of fire. Look for more lines of depositors forming in front of CFC branches in coming days…
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