[lindismith]

China and Russia are neighbors. It makes sense for them to try to get along. Like us and Canada.

To add to your thoughts – I worry that our government knows we are headed for an economic slowdown, and to keep the economy going will opt for the input of the War Machine and invade Iran.

[lindismith]

Bugs, can you elaborate on your post? I have often wondered how the land is valued? When you say the market, do you mean what developers will pay? And by extension, what consumers pay for their homes?
How is this data tracked? Who keeps the records?
When a development fills up, and there is no more land, how do they keep valuing it?

We have touched on some of this before, but I’m just now putting it all together – I seem to remember a post about Warren Buffet saying something about his multi-million dollar home in Laguna wasn’t really worth the multi-millions, that it was really the land….

On a related note to construction costs – my office manager just told me her husband who is a supervisor at a construction remodeling company is experiencing the slowdown. Their biz is down 33% over last year, and they just laid off 2 supervisors. The owner pulled her husband aside, and told him if it comes down to it, he may be letting all of them (5 supervisors) go, but he’ll keep her husband. Her husband called some his suppliers to ask “what was going on.” They all told him it’s county-wide, but that “they expect it to pick up soon.”

[lindismith]

hmmm…. well we certainly wouldn’t all keep getting our fix of Piggington everyday if you didn’t post as much.

I personally have learned tons from you, Bugs, Private Banker, North County Jim, Rank and File, etc. And I just dig the stuff from HS, Asianautica, LostKitty Carlislematthew etc.

And love the new addition of SD Realtor, and some other newbies. (Sorry if I don’t personally mention each and everyone of you!)

It so weird to think of cyberspace as a community, but I think we exemplify it.

[lindismith]

Great posts! Are you all coming to the meet up on Sat?

I’d love to know if anyone else has any ideas on how they can “flex their economic muscle”?

It seems to me no one really does this. Or maybe no one thinks these things make any difference?

Regarding the price setting. From what I understand, this is done by OPEC. But the oil companies know we are dependent, so they just charge the higher prices, and keep the same margins.
I don’t believe they are completely innocent bystanders here. And why would they be? They’re in business after all. It just bugs me because I think our Whitehouse is in bed with them.

We really need to get off our dependence on oil.

Does anyone know of any up coming companies that offer alternative energies? Where are they located? What are they offering us? Why can’t we get access to these? Can we invest in them?

I have some marketing work with bio-diesel folks, but it’s just not a scalable alternative.

[lindismith]

What are the typical profit margins in construction? I have asked this before, but no one could answer….

[lindismith]

Thanks for the book. I will definitely get it. And agreed, no regulation, no subsidies! Free market only.

What are the things I could personally do to “flex my economic muscle and purchase less of the product”?

[lindismith]

yes, these are great questions. We have discussed this a lot on here. I will do a search and try to find the threads for you.

Here you go:

http://piggington.com/housing_prices_will_fall_at_least_50

http://piggington.com/rip_san_diego

[lindismith]

Are you referring to Workman’s Comp?

[lindismith]

He does have many careers related to RE.

I took his extension course through UCSD last year on how to convert multi-family units to condos. It was a 1-day seminar, and it cost me $100. The room had 300 people. I don’t know how many times he taught that class.

He started the course talking about his background in Economics, and then his foray into RE. His first personal conversion was +- 200 units in La Mesa in the 80s. He now has a firm that does just conversions. His son came on board last year.

He is a really nice guy. He has a wealth of information, and he personally returned any emails I wrote him.

BUT, he is really savvy, and he does have a vested interest in saying the market is ok.

Lastly, I agree with Bugs. What Gin is saying is just the most positive way of putting it. Of course, we all know better, and see the data for what it really is.

[lindismith]

Our country does have a plan: we are actively in Iraq right now. The whole south-western corner has been carved up into sections that each big oil company can start drilling. I’ve mentioned it before, but if you’re new to this forum and interested in this subject, read McQuaig’s “It’s the Crude, Dude.”
This strategy of occupying the Middle East goes back to the time of Kissinger. I don’t mean to be facetious here. This really is their plan.

[lindismith]

Yes, those drug ads exemplify how seductive advertising/marketing is! People are asking for drugs from their physicians, without even knowing what they are!

I think it is only a matter of time before the UK and the rest of Europe begin consuming like Americans.

It isn’t totally our fault. We have just never really known shortages, like Europeans have. Plus, like I said, marketing is coming at us from every angle here, and we don’t even realize when we’re being sold something (think product placement in movies, fabulous packaging on junk products, web pages that are news, but really they are selling stuff too – MSN homepage for example). Plus, you have to admit, getting something done/purchasing is really easy in the US compared to other countries. Grocery/drug stores open all the time etc. Customer service departments that always answer your call. You can buy a car on Thanksgiving! What other country would open a car dealership on a public holiday???

I have to add here: we don’t get enough time off in this country. We work a lot. And it’s hard to see the forest for the trees when we’re stressed, and being pressured to buy/consume/spend etc. Afterall, that’s why we’re working right?

Consuming is both a hobby and a drug.

We just aren’t used to going without. Our current generations have very little idea what it’s like to go without, and the ones that can remember The Great Depression didn’t pass along what they learned to us, or don’t speak up enough.

In the past, I have had days where I challenged myself to not buy/consume anything for a day. It is really hard.

For those interested, there is a movement against consumerism with participation from these cool folks:
http://www.adbusters.org/metas/eco/bnd/

Amongst other things they bring us, “Buy Nothing Day,” and “Turn Off Your TV Week.”

[lindismith]

We are just spoiled, we want to comsume, and then consume some more.

Such a great line! I could not agree more.

I have traveled all over the world, and am always surprised when I return home, and see people popping pills to overcome their depression, going into debt to have a new car, etc, when others in less fortunate places are just trying to figure out where their next 1000 calories are going to come from.

I can honestly say, a lot of it has to do with very, very savvy marketing. It’s very, very persuasive. The only thing that has helped me, is turning off my t.v. I have not watched tv in 4 years. (Ok, some World Cup, and I was completely mesmerized by the ads!)

Do not underestimate how seductive it is. On you, and your children.

[lindismith]

Yes, I should have been more clear. I think they can service them better and therefore make the money via the tolls they need to earn.

I believe in privatizing some things like this – we all know the stories of our governments paying out too much money to companies like Halliburton.

Why shouldn’t the taxpayers get a better deal?

[lindismith]

I don’t know these answers, but I do know Australians know how to build roads.

I once dated a road-builder from Australia (swear to God), and he couldn’t believe 1) how many roads we have and 2) how crappy they are in some parts of the country.

So, my best guess is that they see an enormous opportunity to make money doing something they know very well, and perhaps they think they can make them more efficiently, or using better technology, so maintainance costs will be less.

These are all just guesses though.

As to why we’re not doing it???? I have no idea. We’re too busy building roads in the Middle East???

[lindismith]

check out this thread too:

http://piggington.com/buy_or_dont_buy

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