[VCJIM]

I disagree; the first one did not do ok. They may not have lost much, if any, but I guarantee they didn’t gain. Think insurance, property taxes, etc.

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Poway, I read every word of each article. Very helpful, thank you. It confirmed my need to partially divest of the US dollar.

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socalarm,

What part of LA are you in? I sold my house in the valley last year, I believe I could offer some insight into the LA market.

Based on what I’ve read of your situation so far, you should sell.

[VCJIM]

From what I remember, they blasted holes through mountains and ran the pipe through. Kinda difficult to inspect, I would think. However, there are certainly methods, such as “how much oil did we pump in, and how much came out the other side?”. But given the vast distances and volumes, leaks could be difficult to detect. A decent size leak doesn’t mean there is a small hole, it likely means a large section has corroded.

I’m not defending them, just recounting what I saw.

To answer your question, if certain pieces of my test equipment fail, I’m dead in the water until they’re fixed.

[VCJIM]

Lindi,

I’ve watched a bunch of the Discovery Channel type shows on the Alaska pipelines; they are amazing and were incredibly difficult to build. Much like Hoover Dam, whole cities were created around them. Anyway, because I’m now an expert after watching those shows, it seems that there are very remote and difficult areas to access. While I agree it should be MANDATORY to inspect, it *may* have been practically impossible.

[VCJIM]

There are several areas that are still appreciating, largely from people cashing out and relocating. It is the smaller areas that are appreciating the most, but it too will be short lived. They are the last cities “getting the bubble”. I would think they will have steep declines without strong industry and job growth.

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Good questions. Yes I’ll start a thread after I meet with him. Let me know if you think of any others.

The Bank of Italy is moving away from the US dollar because it is becoming more risky; the same reasons we want to diversify away from it. A little larger scale than you and me, though : )

[VCJIM]

Poway,

I will be meeting with a French banker next weekend, my main topic for him will be investing in Euros. Do you have any specific questions you’d like me to ask?

Here’s a list off the top of my head:

How can an American invest?
Are there investments like CDs?
What safety / insurance do they have?
Do I need to travel there, or can it be done from here? (Not that I mind a trip to France, mind you)
What sort of documentation will be required?

[VCJIM]

I was going to purchase an industrial building last year. Basically, in addition to the business qualifying for the loan, I also had to personally qualify and guarantee it. I think the interest rate was higher than a comparable sfr, but I can’t be certain.

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Both The Bank of England and the European Central Bank raised interest rates last week.

The Bank of Italy revealed that it cut US dollar-denominated reserve holdings from 84% at end-2004 to 63% by end-2005. The Bank shifted reserves to the pound instead, from zero to 24%.

[VCJIM]

It is common practice to buy a building (office, industrial, etc) personally and lease it to your business. It protects the investment from lawsuit, you get the building essentially paid for with before-tax-money, and you personally benefit from its appreciation. I imagine the same could be done for a house if you could justify its existence for a business to the IRS.

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rank, that’s a fascinating idea I’ve never considered. I’d be interested too!

However, my first thought is we wouldn’t want a house as an asset of our business, in case we get sued. We could lose the house.

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Raise. Most other central banks are raising; if the fed does not it kills the dollar. The housing market and economy will not be saved by 1/4 point drops every quarter; it’s too late for that. It’s not too late to save the dollar, however. Pick your poison.

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JES,

I know Idaho and Montana pretty well if you have any questions.

[VCJIM]

X1Y2Z3,

I feel like I’m talking to a cartesian coordinate system. Or a scrabble board. A twister mat? (did I just date myself?) Anyway, love the name.

In one of your posts, you wrote that you think the fed will lower interest rates to help housing and the economy. However, with other national banks raising rates, this will dramatically lower the desirability of US equities. It looks to me like the fed is stuck between the proverbial rock and hard place, and they’ve made it clear that inflation is the primary concern. Do you have any further thoughts?

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